Glassnode indicates that Bitcoin may be nearing an early bear market. Short-term holders are observing unrealised losses similar to historical bear cycles, while long-term holders might face profit reductions. Bitcoin is currently priced at $84,557, with market conditions signalling a potential bearish phase ahead.
Recent insights from Glassnode, a market intelligence firm, suggest that Bitcoin (BTC) may be approaching an early bear market phase. On their social media thread on platform X, Glassnode highlighted signals that historically precede bearish trends in Bitcoin’s market cycles. Notably, short-term holders of Bitcoin are currently experiencing unrealised losses, which signify conditions similar to previous bear markets.
Glassnode explains that the unrealised losses for short-term holders, when measured against percentage drawdowns, reveal substantial losses relative to Bitcoin’s current price corrections. While long-term holders enjoy profitability, market fluctuations may adversely affect their gains, indicating a potential transition to a bearish environment.
The distinction between holders is significant: short-term holders are those possessing Bitcoin for less than 155 days, whereas long-term holders have maintained their assets for longer. Glassnode also addresses recent metrics indicating that Bitcoin is at a pivotal point regarding market direction, as volatility-adjusted net realised profit/loss has reverted to its long-term median. This metric typically serves as a boundary marker between bull and bear markets.
Currently, Bitcoin is priced at $84,557, reflecting a minor decrease over the past 24 hours. Investors are encouraged to conduct thorough research before partaking in high-risk investments involving cryptocurrencies. The Daily Hodl clarifies that their insights do not constitute investment advice, and all trading decisions should be made at the individual’s risk.
