Bitcoin’s price has remained within the $81,000 to $86,000 range for the past week, demonstrating significant uncertainty between bullish and bearish traders. While many on-chain metrics present a bearish outlook for the leading cryptocurrency, fresh data indicates that the bullish trend may not be over just yet.
BTC Investors Not in Full Panic Mode: Blockchain Firm
In a recent post on the X platform, blockchain analytics company Glassnode reported that a particular segment of Bitcoin holders, known as “short-term holders” (STH), are experiencing mounting market pressure. This on-chain insight is derived from the value of unrealized losses within this investor group.
To clarify, an unrealized loss is one that exists only on paper, as the investor continues to hold and potentially sell an asset that is declining in value. A loss is only considered “real” or “realized” when the asset is sold for less than its purchase price.
According to Glassnode, unrealized losses among Bitcoin investors have been rising recently, pushing short-term holders close to a significant +2σ threshold. Historically, the STH Relative Unrealized Loss metric reaching this extreme +2σ level has correlated with increased selling pressure.
However, Glassnode emphasized that the magnitude of STH losses remains within the typical range seen during a bull market. In fact, these losses are minimal compared to the market-wide sell-offs experienced in 2021, implying that the bullish cycle may still be intact.
To further highlight this point, Glassnode has indicated that the rolling 30-day realized loss for Bitcoin’s short-term holders has now exceeded $7 billion, marking the largest sustained loss event of the current cycle. Despite the gravity of this amount, it is still comparatively less severe than capitulation events witnessed at the onset of previous bear markets.
For example, Bitcoin’s realized losses peaked at approximately $19.8 billion and $20.7 billion during significant price corrections in May 2021 and 2022, respectively. Given that current realized losses remain well below historical capitulation levels, there is a likelihood that the market has not entered a state of full-scale panic.
Bitcoin Price At A Glance
As of this writing, Bitcoin is trading at approximately $84,300, reflecting a 0.3% increase over the last 24 hours. Data from CoinGecko indicates that the leading cryptocurrency is down only 0.6% over the past seven days, underscoring the volatile state of the market.
Disclaimer: For informational purposes only. Past performance is not indicative of future results.
