Bitcoin ($BTC) is going through an extended bear market amid the growing uncertainty. Particularly, yesterday’s market analytics indicate a noteworthy shiftin the investor sentiment since Halloween. In this respect, based on the data from Glassnode, the long-term $BTC holders realized massive profits in the cycle’s early days. Additionally, the price contraction from the $110K mark to $60K signifies a sheer 45% plunge.
Long-Term $BTC Holders Indicate Weak Conviction as Bearish Trend Deepens
As per the on-chain data, Bitcoin’s ($BTC) bear market is deepening, suggesting entry into a relatively severe phase. Rising fear raises caution among the traders who aggressively buy the dips. Specifically, $BTC’s price crash from the $110K mark to the $60K range increases the downside risk.
Additionally, the data discloses that the long-term holders have reportedly realized nearly 3.67M $BTC in terms of profits. This indicates a volume significantly bigger than the former cycles. Hence, this early profit-taking signals minimized conviction among professional investors, leaving the market considerably vulnerable to extended corrections. The holders are spending their $BTC holdings under pressure, showing the increasing plunge in overall sentiment.
Relative Unrealized Loss Signifies Bitcoin Remains Far from Market Bottom
At the same time, while Bitcoin is changing hands near $60K, it has made some weak bounce attempts, highlighting that the leading cryptocurrency has not yet reached bottom. Another concerning factor is $BTC’s failure to sustain its price above the 1%-5% cost basis and 10% supply. This hints at capitulation among top $BTC holders.
According to Glassnode’s data, the Relative Unrealized Loss indicator also displays a sobering scenario. In this respect, despite the collapse from the $107K mark, the losses are gradual 1.3%, significantly below the levels witnessed in sharp bear markets that exceeded 50%. Overall, while $BTC hovers around $60, the market is experiencing intensified debate over potential expansion of the bearish trend or a reversal.
