According to Cointelegraph, the price of Bitcoin has so far fallen by more than 16.5% from a high of $63,801 on July 1 to a low of $53,499 on July 5. Data analysis platform Glassnode claims that this is the "deepest correction" since the end of 2022, and many short-term holders (STHs) have suffered huge unrealized losses.

"From May to July, the market experienced its deepest cyclical correction, falling more than 26% from its all-time high."

Glassnode analysts found that 83% of the supply controlled by short-term holders (addresses that have held Bitcoin for less than 155 days) suffered unrealized losses due to selling pressure.

According to the chart below, recent selling pressure once brought the price down to $53,000, with 2.9 million BTC (about $166.75 billion) of the 3.2 million BTC (about $184 billion) controlled by short-term holders falling below their cost. benchmark.

Glassnode analysts noted that this puts significant pressure on Bitcoin and the broader crypto market. The long-term outlook for Bitcoin price will remain bearish as long as it remains below $58,000 in the coming days, as this level acts as significant resistance.

Bitcoin is trading at $57,485 at the time of writing, and it has encountered strong resistance during its rebound. The chart below confirms this, showing the 200-day exponential moving average (EMA) forming the bull market’s first line of resistance at $58,180. Another hurdle may appear at the $63,880 level, where the 50 and 100 EMA will overlap. Selling pressure in this range may prevent any attempts to push the price higher as investors will take profits or break even.

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