Glassnode has unveiled a unique Capitulation Metric that utilizes the Cost Basis Distribution to provide traders with insights into likely price bottoms and market turning points in the volatile crypto market. The metric takes into account deep drawdowns and implements quadratic weighting to emphasize bigger losses. It detects local bottoms and identifies when troubled sellers exit the market. By leveraging on-chain data, the Capitulation Metric aims to assist traders in making informed decisions during extreme market conditions. It considers weighted sell volumes, smoothing for clarity, and non-linear economic pain to offer insights into potential buying opportunities.



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