Analysts: The market is digesting panic, and on-chain indicators show that Bitcoin has a bottoming structure.

According to Mars Finance, on June 6th, on-chain analyst Murphy stated that although BTC fell below the $60,000 mark yesterday, market losses and sentiment indicators did not deteriorate in tandem. The current 3-day average of adjusted realized losses (EARL) is $1.13 billion, almost half of the figure on February 5th. He believes this doesn't mean BTC won't continue to fall, but the fact that ERL hasn't risen further at lower prices is a standard structure indicating a "bottom expectation." If ERL represents market panic, then STH-RUL (short-term holders' relative unrealized losses) represents the psychological pressure on new investors. During a bear market decline, short-term holders typically experience a severe psychological limit of pressure, with STH-RUL exceeding +5 standard deviations, corresponding to a systemic crisis. Even if prices fall further afterward, STH-RUL usually doesn't exceed the previous peak again because the tokens have already changed hands in the high-loss range, new buyers have lower costs, and market pressure is being absorbed. Murphy believes that EARL and STH-RUL are currently giving the same signal: market panic is being digested, not spreading. While prices are hitting new lows, the loss indicator is not simultaneously hitting new highs. This is not a sufficient condition for a bottom, but historically, almost all true bottoms have this characteristic. Bottoming out is a process of repeated pressure and digestion until shares have changed hands during the panic and new buyers have sufficiently low costs, at which point prices will gradually lose their downward momentum.