Ongoing volatility has reached its limit Bitcoin’s recent upward attempt retested the $68,000 level before turning back into resistance. The price of BTC is still on a downward trend, and many Bitcoin holders are suffering losses, especially those who have recently purchased Bitcoin assets.
Short-term Bitcoin holders hold loss positions
Bitcoin price performance It continues to put pressure on traders and investors across major networks. During this bearish move in BTC price, Darkfost, market expert and verified author at CryptoQuant, said: reported Even though the cryptocurrency is trading at around $66,000, short-term holders are still facing losses.
This means that despite several attempts to stabilize the market, the market is in a volatile state due to bearish pressure and momentum is still lacking. The lack of a clear rebound has put more emphasis on short-term investors. Many of them still have unrealized losses..
Experts say these investors are currently facing unrealized losses of 26.3% on average, which is a relatively large sum. This indicator is positioned at 26.3%, but the most important level to pay attention to is the 25% mark. Typically, periods where average unrealized losses exceed 25% are most often associated with advanced bear market stages.
As is clear from this graph, at these stages, short term holder Starting to incur large losses has traditionally been a lucrative opportunity for long-term investors to accumulate through DCA. Dirkforst pointed out that the relationship between price trends and profitability is also an interesting aspect. A bullish trend can generally emerge when the average unrealized gain on STH returns above 0%. However, this remains in place only up to a certain point.
During periods where returns for short-term holders are very high (typically around 20% in this cycle), the risk of trend reversal increases significantly. Meanwhile, experts believe the trend is largely bearish, with short-term holders experiencing historically high levels of losses. Nevertheless, these are also classified as periods in which the exposure of buildings is a logical move.
Pressure builds on BTC spot ETFs
Even after several weeks, Bitcoin Spot Exchange Traded Fund (ETF) We continue to see bearish behavior and steady capital outflows. Investor Crypto Theis said in a post on X: highlighted The fact that major funds have been underwater for the past 25 consecutive days suggests that confidence in the asset’s outlook is weakening.
The fund’s sustained underperformance is portrayed as more pressure than speculative noise. When passive income stalls and holders experience drawdowns, weak hands often rotate out and strong hands emerge. accumulate Quietly. Crypto Tice added that sustained ETF pain is usually accompanied by increased volatility.
Now, this trend is raising questions in the market about whether investors are losing money or whether it could lead to supply depletion. This is due to the fact that a 25-day unrealized loss will psychologically reverse the position quickly.
Featured image from Getty Images, chart from Tradingview.com
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