According to BlockBeats news, on September 5, the encryption data analysis platform glassnode released a report stating that “Bitcoin price trends have stagnated, and investor sentiment has been cold over the past six months. However, significant changes have occurred in the past three months, and downward pressure has increased, leading to The crypto market has experienced its most significant correction of this cycle.
Nevertheless, from a macro perspective, the Bitcoin spot price is about 22% below its all-time high, which is still a relatively small drop compared to the extent of the correction during the historical bull market, indicating that most Bitcoin investors are still significantly profitable, highlighting the robustness of their positions.
However, the short-term holder group is still experiencing high unrealized losses, suggesting that they are currently the most vulnerable group and will be the main source of selling pressure in a market decline.
The short-term holder group, which represents new demand in the market, appears to be bearing most of the market pressure. Their unrealized losses dominate the overall picture, and the size of these losses has continued to increase over the past few months.
We can confirm the above observation by evaluating the short-term holders MVRV ratio, which has fallen below the breakeven value of 1.0. This indicates that, on average, new investors are holding positions at a loss. Overall, unless the Bitcoin price retraces to the short-term holders’ cost basis, which is $62,400, the market is expected to continue to weaken.
Meanwhile, profit and loss activity remains very light, suggesting that the current price range is becoming saturated, with key indicators such as the sell-side risk ratio hinting at higher volatility ahead.”
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