Cryptocurrency markets are displaying signs of bullish behavior once again, with Bitcoin, the largest crypto asset, reclaiming several key resistance levels such as the $85,000 threshold. Bitcoin may have rebounded briefly after facing heightened bearish pressure for days, but BTC retail investors continue to grapple with losses.
Short-Term Bitcoin Holders Still In The Red Zone
In the past week, Bitcoin has recorded gains of nearly 7%, demonstrating its resilience in volatile market conditions. While BTC’s price recorded gains, investors’ conviction has remained bearish as the brief upswing fails to alleviate losses.
Advanced investment and on-chain data platform Alphractal reported that BTC short-term holders have remained in the red despite the asset reclaiming $85,000 on Thursday. What this means is that the current price is still trading below the average price at which short-term holders purchased the flagship asset.
While short-term holders are still at a loss, long-term BTC holders continue to enjoy notable profits from their investments. Data from the platform shows that the short-term holders’ realized price is positioned at $92,700, and the long-term holders’ realized price is situated at the $26,500 level.
Furthermore, Alphractal highlighted that most investors who purchased BTC during the last six months are now in a precarious situation. BTC’s short-term holders in loss are believed to be responsible for these investors’ loss of appetite for accumulation in recent weeks.
BTC may signal potential strength, but short-term holders’ hesitancy highlights the ongoing uncertainty and the precarious equilibrium between recovery and fresh selling pressure. With the flagship asset gradually losing its bullish momentum, the recent bounce may be doing little to ease the tension among the most reactive cohort.
In the meantime, long-term BTC holders are still sitting on a healthy profit in spite of current price fluctuations. Historically, this type of divergence between long-term and short-term holders has served as a precursor for major market movements.
BTC Percentage Of Wallet Addresses In Loss Compared To Past Cycles
Since reaching a new all-time high, BTC has struggled with bearish pressure, dropping from $109,000 to the $80,000 threshold. Despite the persistent volatility that has hindered upward attempts, the percentage of Bitcoin wallet addresses in loss remains at a good level.
After examining the profit vs. loss ratio, Alphractal noted that wallet addresses in loss are presently at 9.6%. Given that addresses at a loss are at 9.6%, it implies that the percentage of wallets at a profit is above 90%, which is a good level amid unfavorable market conditions.
Another interesting fact about this development is that the 9.6% addresses at a loss appear to be the lowest level compared to past market cycles. This suggests a positive market trend for Bitcoin as most holders are enjoying a profitable position.
