Briefly –
- BTC might have dipped into a bear market, as multiple metrics show.
- New data suggests that bulls should step up with massive moves to overturn the slugging performance period.
- Bitcoin supply percentage by long-term investors touched a new peak since 2020 March.
Bitcoin had its price crashing to multi-month lows beneath $33,000 as the bellwether crypto drops 50% of the value from the 2021 November all-time peak. That resulted in the 2nd-worst crash since the bearish market between 2018 and 2020.
BTC Bulls Should Step Up
Bitcoin bulls seem unbothered even as the Greed & Fear index shows investors’ sentiment fell into extreme fear. For now, the world’s largest digital coin seemed to jump into the bear market as NUPL (net unrealized profit and loss) shows 32.5% of BTC’s market cap remained as unrealized profit. The metric, highlighting low probability, emerges in a bear markets early to mid-stage.
Bull markets like those in 2017 and 2013 had aggregate platform profitability falling between record peaks set in Q2 and Q4 highs. Meanwhile, the MVRV ratio (gauged by market cap divided by the realized cap) displayed a 0.85 reading. That indicated the crypto dipped in a territory seen during bear markets.
Glassnode, a cryptocurrency analytic firm, stressed that the MVRV metric demands massive actions by bulls. That way, they can overturn the underperformance by Bitcoin. Failure will see bears continuing to dominate the marketplace.
The RTLR (realized to liveliness ratio) also shows that the market not only wavers beneath the RTLR value of $39,200 but realized price stands around $24,200, a scenario witnessed in the early to the mid-stage in a bear market.
Meanwhile, total realized losses climbed to more than $7.57 billion over the last week, hitting a figure similar to massive retracements in 2021. Glassnode further stated that the current downtrend remains sustained and led to colossal losses since November’s early sessions, showing a painful period.
Nevertheless, near-term investors currently hold around 18.3% of BTC supply, indicating that long-term holders had a large portion of the coin’s supply. Moreover, long-term investors remain calm despite massive declines in Bitcoin. Also, data indicate 6.05% of 81.7% BTC supply by long-term investors dropped to unrealized loss, exploring the highest supply volume since the 2020 March crash.
Macro Charts, a crypto analyst, stated that investor sentiment sits around historical pessimism. The expert trusts the current market outlook remains worse than the 2020 March and 2018 December falls.
