Bitcoin holders’ losses still outweigh gains.
Source:
So many investors are selling Bitcoin at a Loss After Buying Near Recent Highs.
Source: Cryptoquant
Meanwhile, new capital leave the market. New investor inflows have turned negative, with approximately $2.6 billion disappearing from Bitcoin in the past 30 days.
In stronger markets, dips tend to attract new buyers. This time there is no support, making every dip feel weaker. In addition to the pressure, the realized profit-loss ratio has also fallen. At the time of writing it was around 0.25, meaning losses are captured much faster than gains.
These types of measurements usually appear when trust is lower and salespeople dominate.
A warning worth mentioning
A recent Santiment report stated that periods of strong fear often occur just as Bitcoin approaches a short-term bottom.
Source: Santiment
When online conversations fill with words like “crash” and “sell,” prices are often already close to the local low.
The report also noted that traders tend to stop buying dips just before the market starts to recover. Selling pressure usually begins to subside when confidence wanes and negativity takes over. That gives room for a rebound.
Source: Santiment
Statistics like the MVRV show whether recent buyers are making a profit or a loss. When many holders are facing losses, forced selling often calms down.
When sentiment is at its worst, the market is sometimes closer to a turning point than it seems. Considering the current state of the crypto market, it can be concluded that now is a good time to enter it.
Final thoughts
- Bitcoin may be close to a short-term bottom.
- When most holders sell at a loss, the risk often shifts from downside to missed opportunities.