Some on-chain data in July pointed to the end of the capitulation period and an improvement in investor sentiment. This is stated in the ForkLog analytics report.

Despite the drop in the price of the first cryptocurrency, the number of addresses with a balance of 1 BTC or more is growing steadily (+9.4% since the beginning of the year).

At the end of July, the indicator reached an all-time high of 891,009. Its growth indicates a possible increase in the number of market participants, as well as the desire to save among retail investors.

The situation of addresses in the “≥ 1 ETH” category, whose number has increased by 15.7% since the beginning of the year, is even more evident.

Against the consolidation ground and subsequent decent recovery of bitcoin price, the Puell Multiple indicator has started to leave the “green zone”, which means oversold.

The Net Unrealized Profit/Loss (NUPL) metric also shows that the capitulation period has passed and investor sentiment has increased. The indicator moved to the field of “hope/fear” and turned towards “optimism”.

On July 28, the MVRV Z-Score indicator crossed the upper limit of the deep oversold zone at 0.1. This is another signal of the crossing of the “bottom” of the market cycle.

Recall that in early August, Bank of America analysts reported that the increase in crypto outflows from exchanges and the increase in net inflows to stablecoins indicated bullish market momentum.

Earlier, CoinShares Chief Strategy Officer Meltem Demirors predicted that Bitcoin would hit an all-time high in the next 24 months.

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