Bitcoin Losses Reach $1.7B, Outpace $605M Profits

The Bitcoin market is experiencing increased sell-side pressure, with bears currently dominating the price action. An on-chain evaluation suggests this is due to rising panic-induced sales.

Realized Losses vs Gains

  • Bitcoin is in a capitulation phase, as indicated by the Realized Profit and Loss metric.
  • $1.705 billion in realized losses versus $605 million in gains indicate a Loss/Gain ratio of 2.82.
  • 74% of the total realized volume is in losses, suggesting significant market distress.
  • Historically, such extreme capitulation events can lead to either price recovery or further declines.

Critical Price Levels for Bulls

  • Key redemption levels for bulls are around $71,450 and $58,940, representing realized prices for different investor groups.
  • On a weekly timeframe, $80,000 and $74,000 are crucial for potential short-term recovery.
  • Bitcoin's current value is approximately $89,331, with no major movement in the last 24 hours.