Investors who purchased Bitcoin (BTC) in the past 155 days are facing some of the highest levels of losses this market cycle. Selling pressure among these short-term holders (STH) has increased significantly. This will cause the price of digital currencies to fall deeper.
The realized price of STH (a measure that reflects the average cost at which this group of investors acquired the coin) is currently around $108,500.
With the recent market and Bitcoin price drop into the $80,000 area, These addresses assume a loss of nearly 22%a level not observed throughout the current bullish cycle.
The graph below shows trends over the past year. Bitcoin STH surrender episode intensifies An area where the price of an asset is below its realized price.
Bitcoin market crash
The sharpest peak of STH realized the loss This coincided with a significant decline in market value.similar to those recorded in recent weeks.
In fact, Bitcoin has been experiencing a continuous downward trend since October, and the trend has worsened since the beginning of November. This has increased pressure on short-term holders.
“These are tough times for short-term investors,” said a CryptoQuant community analyst known as “Darkhost.”
“And it is precisely at times like these that it can be interesting to take a position, as long as the long-term trend remains bullish,” he argued.
The bearish behavior of short-term Bitcoin holders is consistent with previous analysis reported by CriptoNoticias. These underscore the withdrawal of fearful retailers in recent weeks. Also, signals related to a prolonged bearish environment in the market.
(Tag translation) Bitcoin (BTC)
