Bitcoin (BTC) has experienced its “deepest correction” in the last 24 months, impacting short-term holders (STHs) with unrealized losses, according to onchain data from Glassnode.

In the recent decline, Bitcoin price dropped more than 16.5 percent from a high of $63,801 on July 1 to set a low of $63,499 on July 5, according to data from Cointelegraph Markets Pro and TradingView.

Despite this, Glassnode's Weekly On-chain report notes that the correction is noticeably shallower compared to past cycles. This points to a strong market structure and “decreasing volatility as Bitcoin matures as an asset class.”

Glassnode analysts found that with the selloff, 83 percent of the supply controlled by short holders fell into unrealized losses.

According to Glassnode analysts, this has put significant pressure on Bitcoin and the overall crypto market.

If BTC price remains below $58,000 over the next few days, the long-term outlook for Bitcoin price will be bearish as this level acts as a key resistance zone.

At the time of publication, Bitcoin was trading at $57,485 and was struggling with stiff resistance on the way to recovery compared to the support it received on the downside.

Aggressive selling from this supply congestion zone could clip investors' attempts to push the price higher while taking profits or breaking even.

Liquidation data from Coinglass shows an accumulation of high short bids at the 200-day EMA near $58,587, highlighting the importance of this level.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.

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