Bitcoin Sth made losses far from the levels of 2021: does the bull still work?

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The price of bitcoin has stuck within the consolidation range of $ 81,000 to $ 86,000 during the past week, showing a high level of indecision between bulls and bears. Although most of the indicators in the chain are painting a bearish image for the top -level cryptocurrency, the latest data suggests that the execution of the bull may not end yet.

btc investors are not in full panic mode: Blockchain Firm

In a new publication on platform x, the Blockchain Glassnode analysis firm <a target="_blank" href="https://x.com/glassnode/status/1903146240642035879″ target=”_blank” rel=”noopener nofollow”>revealed That a specific class of bitcoin holders known as “short -term headlines” (STH) face growing market pressure. This observation in the chain is based on the value of the unrealized losses of this investor cohort.

For clarity, an unrealized loss refers to one that is still on paper, since the investor still clings and sells an asset (with a decline value). A loss only becomes “real” or “made” when the holder sells the asset at a value lower than the purchase price.

According to Glassnode, the unrealized losses of bitcoin investors have been rising in recent weeks, specifically pushing the short -term holders towards a significant threshold of +2σ. The relative STH loss metric that reaches the extreme threshold of +2σ has been associated with greater sale pressure in the past.

However, Glassnode pointed out that the size of STH losses still falls within the range typically observed in a bullish market. Specifically, the magnitude of these losses pales compared to the mass sale of the entire market witnessed in 2021, which suggests that the bull cycle may not do yet.

Source: @glassnode on x

To further illustrate this, Glassnode revealed that the loss made of 30 days for short -term bitcoin holders has now exceeded $ 7 billion, which represents the largest loss event sustained in the current cycle. Despite the importance of this figure, it is still much less severe than the capitulation events seen at the beginning of the previous low markets.

For example, bitcoin's losses increased up to $ 19.8 billion and $ 20.7 billion during the main price corrections in May 2021 and 2022, respectively. Taking into account that the losses made are still well below the past capitulation events, there is the possibility that the market has not yet reached a large -scale panic.

bitcoin price at a glance

At the time of writing this article, the price of bitcoin is around $ 84,300, reflecting a 0.3% increase in the last 24 hours. According to Coingcko data, the badly chiptomoned has decreased by a single 0.6% in the last seven days, emphasizing the strength of the market.

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The price of btc on the daily timeframe | Source: BTCUSDT chart on x/xVp7ZuIc/" target="_blank" rel="noopener nofollow">TradingView

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