Sustained volatility has reached its limits. BitcoinThe latest attempt to move higher came after retesting the $68,000 level, which once again turned into resistance. With the BTC price still trending downward, many Bitcoin holders have suffered losses, especially those who recently purchased the asset.
Short-term Bitcoin holders maintain a losing position.
Bitcoin price performance It continues to put pressure on traders and investors across major networks. During the downtrend in BTC price, Darkfost, a market expert and verified author of CryptoQuant, said: reported Short-term holders are still suffering losses despite trading about $66,000 of the cryptocurrency.
This means that despite several attempts to stabilize the market, it remains depressed due to bearish pressure and momentum remains poor. Due to the lack of a clear rebound, interest in short-term investors grew even more. Many of them are suffering unrealized losses..
According to experts, the current average unrealized loss rate for these investors is 26.3%, which is a relatively large amount. The indicator sits at 26.3%, but the level of most interest is 25%. Typically, periods in which average unrealized losses exceed 25% most often lead to bear market phases.
As this chart shows, these steps are: short term holder Starting to incur significant losses has traditionally been a lucrative opportunity for long-term investors to accumulate through DCA. Darkfost pointed out that the relationship between price dynamics and profitability is another interesting aspect. When STH’s average unrealized profits revert above 0%, a generally bullish trend can be indicated. However, this only stays the same up to a certain point.
During periods when short-term holders’ profits rise significantly (usually around 20% in this cycle), the risk of a trend reversal increases significantly. In the meantime, experts believe the trend is broadly bearish, with short-term holders holding historically high levels of losses. Nonetheless, these periods are categorized as periods where building exposure is a logical move.
Pressure Building on BTC Spot ETF
Even as the weeks go by, Bitcoin Spot Exchange Traded Fund (ETF) It is still experiencing declines and steady capital outflows. Investor Crypto Tice wrote in a post on highlighted The fact that a major fund has been underwater for the past 25 consecutive days suggests that confidence in its asset prospects is waning.
The continued decline in fund performance paints more of a build-up of pressure than speculative noise. When passive income stagnates and the holder is in a drawdown, weak hands often rotate or lead to strong hands. accumulation quietly. Crypto Tice added that continued ETF pain typically leads to increased volatility.
This trend is now raising questions in the market about whether investors will lose out or whether it will lead to supply depletion. This is because 25 days of unrealized losses can quickly psychologically reverse positioning.
Featured image from Getty Images, chart from Tradingview.com
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