Bitcoin Price Tumbles Below $60,000 Amid Rising Sell-Side Pressure

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In a grim turn of events, Bitcoin, the world’s leading and most popular digital currency, has experienced a staggering dip below the $60,000 support mark. It’s a grim milestone that has not been witnessed for nearly two months. This flagship cryptocurrency has been largely experiencing an exemplary run, living in the glorious period of heightened fanfare since the start of the year, especially post the establishment of Spot Bitcoin ETFs in the US market. Yet, the current convergence in Bitcoin’s price is a stark indication that the once buoyant euphoria may be waning.

Recent data from well-known on-chain analytics company Glassnode points to a distinctively chilling reality. Bitcoin, which was basking in an atmosphere of wild euphoria for the past six and a half months, is gradually losing its intense enthusiasm. Furthermore, the distribution pattern of Bitcoin has ventured into a troubled area of apprehension, fear, and apprehension. This indicates that investors are increasingly gearing up to sell.

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Following its historic zenith of over $73,737 in March 2024, Bitcoin’s sheen seems to have dulled significantly. It experienced a steep 18% plunge as investors appear keen on making profits. Accompanying this fall in price is a parallel increase in the percentage of addresses retaining losses, clearly indicating mounting selling pressure. In a tandem decline, the percentage of addresses that once were secure in the profit-making territory has slumped from above 99% to 86%.

Glassnode’s recent report emphasizes the consolidating action using the Net Unrealized Profit & Loss (NUPL) metric. This fascinating metric suggests that Bitcoin had ridden a wave of overwhelming euphoria early in this cycle, a stark contrast from past cycles. It’s worth noting that the NUPL crossed over the significant 0.5 mark about 6.5 months before the halving was concluded, stirred by the buzz surrounding Spot Bitcoin ETFs.

This stands quite distinct from the 2021 market cycle, where the NUPL transitioned into a profit zone a hefty 8.5 months following the Bitcoin halving. This analytical measure implies that the market was still high on euphoria for the past seven months. Yet, it has significantly relaxed due to crucial corrections over the course of the past two months.

Worryingly, the report highlights a “distinct uptick in net outflows” across all wallet sizes throughout April. This reflects a shift in current trading sentiment and points to a rising sell-side stress across the board. Moreover, the majority of short-term holders (spanning from one week to one month) have been documenting losses at the 90-day +1sd level from March onwards.

Whilst this “fear” rating has spooked some investors, many crypto analysts perceive this pullback as a healthy correction following such a steep price ascent. Countless long-term holders remain unwavering. Currently, Bitcoin trades at $59,899, slumping by 5.35% in the previous 24 hours.

Given the present cost-basis for short-term holders (STH) stands at $66,700 and their realized price languishes at $59,800, it’s highly likely that more holders in this group have slipped into the loss zone. Cryptocurrency analyst Ali Martinez flags $59,800 as a crucial price threshold to observe given that Bitcoin’s historical trend signals a habit to ricochet over the STH realized price.