Bitcoin’s Recent Rebounds Show Limited Bullish Momentum According to Glassnode

Bitcoin experienced another bounce recently, contributing to a series of rebounds. On-chain analytics firm Glassnode analyzed the Realized Profit/Loss Ratio, which assesses investor reactions to price volatility.

Key Insights from the Report

The Realized Profit/Loss Ratio measures the ratio of realized profits to losses among Bitcoin holders.
Profit is calculated when the sale price exceeds previous transaction values; losses occur when the sale price is lower.
Recent bearish trends show the ratio dipping below 1, indicating greater loss-taking than profit-taking.
This imbalance suggests seller exhaustion, potentially leading to local price bottoms.
Bitcoin's price has rebounded after periods of loss realization but lacks sustained bullish momentum.
The long-term view indicates a downward trend in the 90-day simple moving average of the Realized Profit/Loss Ratio, reflecting weaker liquidity and declining investor profitability.

Current Bitcoin price is approximately $83,600, down nearly 2% over the past week.