BEARISH 📉 : Bitcoin needs realized profit/loss ratio above 5 for rally

A report from Glassnode highlights the importance of liquidity for Bitcoin's price recovery. Historical data shows that strong upside phases require the Realized Profit/Loss Ratio (90D-SMA) to be above a threshold.

Key Points

The Realized Profit/Loss Ratio compares profits and losses realized on the Bitcoin network.
A ratio greater than 1 indicates more profits than losses; below 1 suggests loss dominance.
Currently, the 90-day MA of this metric has declined sharply from its peak in 2025, where profits outweighed losses by nearly 20 times.
The metric is now below 2, indicating profits are less than double the losses.
Historically, a value above 5 has been necessary for sustained rallies.
The current trajectory is downward, making near-term improvement uncertain.
Bitcoin has previously recovered from similar situations but at higher levels than now.

BTC Price

As of now, Bitcoin is trading around $87,800, experiencing a 2.4% decline over the past week.

Bitcoin Price Chart