Bitcoin fell below $62,000 for the first time since February 6. While the weekly loss exceeded 14 percent, the price remains more than 50 percent below its all-time high seen in October. On-chain data shows that short-term investors who bought in the last 155 days are the hardest hit by this decline.
Loss pressure increased for short-term investors
According to CheckOnChain data, the realized profit and loss ratio of short-term investors decreased to minus 1.5. This indicator measures whether sales with profits or exits with losses predominate in Bitcoins held for less than 155 days. While values below zero reveal that sales at a loss stand out, the current level stands out as the deepest negative zone ever recorded.
Mini dictionary: On-chain data refers to measurements generated from transactions and wallet movements on the blockchain. The realized profit/loss ratio is an indicator that shows whether the selling investors closed their transactions in profit or loss according to their costs.
The Fear and Greed Index, which tracks market sentiment, was also in the extreme fear zone with 12 points. This picture is considered as another element that indicates that the investor group that reacts first in periods of deterioration in sentiment quickly tends to exit.
53,800 BTC moved to exchanges in 24 hours
CryptoQuant data showed that approximately 53,800 BTC was transferred from short-term investors to exchanges in 24 hours. According to the data, all of these transferred assets were at a loss. This situation was recorded as one of the most unstable flows seen since the beginning of the year.
The fact that all 53,800 BTC transferred from short-term investors to the exchanges was at a loss, indicating that a new wave of loss-making sales may be accumulating in the market.
Sending Bitcoin to exchanges is often associated with preparation for sale. Therefore, the move in question suggests that a new selling pressure is lining up, in addition to the losses already incurred.
Similar periods coincided with previous bottom zones
The periods when panic-induced sales in the market reached this intensity occasionally coincided with local lows in past cycles. These processes were often associated with the transition of assets from weak hands to longer-term investors. However, there is no definitive sign that the current pullback will not deepen further.
According to Glassnode data, the amount of Bitcoin held in loss increased to 10.5 million BTC, while the supply held in profit remained at 9.8 million BTC. In past market cycles, this balance turning to the loss side was seen in the same period as significant bottom areas.
At the same time, Bitcoin price retreated back to the 200-week moving average, which was tested in all previous bear markets. It is stated that the factor that will determine the future direction of the market is which investor group collects this supply for sale and at what speed.
