Bitcoin may be entering a stage where it is running out of sellers. After bottoming near $60,000 on February 5th, the asset has taken more than two months to consolidate and has gradually climbed towards the $70,000 level. This was accompanied by macro uncertainties, such as the Middle East conflict causing crude oil prices to well exceed $100 per barrel.
CheckonChain data suggests that selling pressure is starting to ease. Realized losses are currently around $400 million per day, still up compared to last year, but have been on the decline in recent weeks.
Realized losses soared to as much as $2 billion on Nov. 21 and Feb. 5, reaching levels not seen in years and exceeding losses seen during the 2022 bear market, according to the data.
“The spot market is moving from aggressive selling to net buying pressure, and both realized gains and losses are decreasing,” Checkonchain said.
Glassnode data reinforces this trend. On a seven-day moving average, realized gains are about $300 million per day, near a 12-month low. This suggests that investors who accumulated Bitcoin at $60,000 are now barely making a profit and are starting to make some profits.
Meanwhile, the realized profit/loss ratio rose to 1.4 times, the highest level since January, according to Glassnode data. This indicator compares the value of coins that moved at a profit with the value of coins that moved at a loss, indicating that realized gains exceed losses.
These indicators indicate that selling pressure is easing in the market, raising the possibility that Bitcoin is nearing the stage of exhaustion of sellers.
