Bitcoin continues to be under pressure as its price falls below $65,000, further reinforcing the view that the crypto market is currently going through an increasingly bearish phase.
At the time of writing, Bitcoin is at $62,826, down 1.90% since it opened early Thursday in Asian trading.
The latest data from Glassnode shows that Bitcoin’s market structure is now in a state often seen during bear market peaks.
One of the key indicators is that short-term investors’ holding costs have fallen below the average true market value for the first time since January 2022.
This situation shows that new investors are buying Bitcoin at lower prices, but their confidence in the potential for price increases is weakening.
At the same time, more and more investors are starting to realize losses.
The ratio of profits to losses recorded on the Bitcoin network has declined sharply, indicating that short-selling activity is increasing.
In just one day, the total realized losses reached $1.35 billion, with the majority coming from long-term holders who had been holding Bitcoin for several years.
This development is often seen as a sign of market capitulation, a situation where long-term investors finally choose to sell their holdings after failing to withstand continued pressure.
While this phenomenon is common during price formation, Glassnode believes the process is not yet complete based on the still high rate of losses.
Bitcoin’s attempt to recover also failed when the price failed to break through the level around $83,000.
That level has now become a key resistance zone as it represents the average purchase price for most Bitcoin spot ETF investors in the United States.
The failure to break through the level has left many institutional investors still in a losing position.
The pressure on the market has increased as Bitcoin spot ETFs have recorded fund outflows of $4.21 billion in the past three weeks.
The large-scale fund withdrawals reflect a decrease in interest from institutional investors who were previously one of the main drivers of Bitcoin’s price rise.
Spot market activity also showed weakness as selling pressure outweighed buying, indicating increasingly negative investor sentiment.
Meanwhile, derivatives traders are expecting larger price movements in the near term despite the market still appearing calm.
Pressure on Bitcoin is also being exacerbated by macroeconomic factors such as rising US bond yields, expectations of tighter monetary policy and a strengthening US dollar, which are reducing interest in risk assets.
