"Bitcoin (BTC), Short-term Investor Losses Deepen... Is the Bear Market Signal Repeating?"

Minseung Kang

Summary

The on-chain analysis platform Glassnode reported that the unrealized losses of Bitcoin short-term investors are showing a pattern similar to the early stages of past bear markets.
Long-term holders are still in a profit range, but over time, peak buyers could become a burden on the market, it pointed out.
Historically, these points of increased losses have been interpreted as signals of bear market entry, but currently, there is no clear bear market trend, it stated.

An analysis has emerged indicating that the loss scale of short-term investors in Bitcoin (BTC) is appearing larger compared to the market's adjustment level. Some on-chain indicators are also suggesting a pattern similar to the early stages of past bear markets.

On the 19th, the on-chain analysis platform Glassnode stated, "The unrealized losses of short-term investors (STH) have expanded to an excessive level compared to the recent adjustment range," and analyzed, "This is a typical pattern that appeared when bear markets began in past cycles."

Glassnode pointed out, "Long-term holders are still generally in a profit range," but also noted, "Over time, those who bought at the peak will be incorporated as long-term investors, and the losses they bear could become a burden on the market."

Additionally, "Historically, these transition points have often been interpreted as signals confirming entry into a bear market," adding, "However, as of now, a clear bear market trend has not yet formed."

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