[Analysis] "Bitcoin structurally vulnerable… possibility of retesting 81,000 dollars"

An analysis said that the price of Bitcoin (BTC) is in a structurally vulnerable state.

On-chain analytics firm Glassnode said in its weekly report on the 26th (local time) that "over the past few weeks Bitcoin's price has been compressed between 81,000 dollars and 89,000 dollars," adding that "this is a structure very similar to the situation after the new all-time high (ATH) in Q1 2022." Glassnode said, "At that time the market showed weakness due to decreased demand," and "the current price range is constrained by limited inflows and vulnerable liquidity as the market is in a downtrend."

It also mentioned the realized profit/loss ratio of short-term holders (STH). Glassnode said, "The STH realized profit/loss ratio is currently the clearest indicator of demand momentum," noting that "the ratio fell below the early-October neutral average (4.3x) and has plunged to 0.07x." It added, "This dominance of losses means liquidity has evaporated," and analyzed that "if the ratio remains low, the likelihood increases that Bitcoin will fall below the 'True Market Mean' of 81,000 dollars."

Glassnode emphasized, "Bitcoin remains structurally vulnerable after falling below key cost levels." Glassnode said, "Liquidity is continuously decreasing, so unless demand strengthens the risk of re-testing the market mean remains high," and "the market will stay in a defensive sideways phase until prices recover the average 'cost-basis' and new demand increases."