Recent analysis indicates that a significant metric pointing to a potential bottom in the Bitcoin market is gaining traction. Bitcoin's price remains above $60,000 despite setbacks in June, while the number of loss-making sales by long-term holders, defined as those who have held the cryptocurrency for one to two years, has diminished.
According to Cryptovizart, an analyst from the on-chain analytics platform Glassnode, this reduction in loss-taking sales typically signifies the concluding phase of bear markets. A notable trend observed is that as losses increase among these holders, the market experiences peak selling pressure. A decline in sales from long-term holders often serves as an early signal of market bottom formation.
The analyst highlighted that losses among this demographic showed a downward trajectory, reversing once the 30-day moving average surpassed $75 million. This indicator has historically provided signals in prior cycles, suggesting that the peak selling period may have concluded, allowing the market to start finding its bottom.
“When the 30-day moving average (30D-SMA) of realized losses begins to decline and stabilizes, it frequently marks one of the most discernible early signs that the most intense distribution phase in the market has concluded,” the analyst stated.
However, it was noted that a decline in losses on its own does not definitively indicate that a bottom has been reached. Instead, it should be viewed as a reliable leading indicator based on historical patterns, warranting close observation.
also Glassnode's weekly report suggests that the cost floor for short-term investors is approximately $69,000. This level may serve as critical support and resistance for Bitcoin's price in the near future.
This material is informational and should not be considered financial advice.
