According to recent on-chain data, Bitcoin's loss/profit margin has dropped to -14.25%, a historically significant threshold that has often led to market recoveries. This suggests that another accumulation phase is underway, with Bitcoin's price at $85,097 against a realized price of $99,250. Historically, when the on-chain trader realized loss margin hits between -12% and -14%, there have been reversals and price conditions for an upward push. Traders usually sell-off at this stage, but historical buying has emerged thereafter. This pattern has been observed in previous instances when Bitcoin's loss margins fell below -12%, leading to price recoveries. This indicates that selling exhaustion tends to happen at points where traders face peak unrealized losses, and Bitcoin tends to reverse these periods into higher price areas. With the current loss margin at -14.25%, it suggests that Bitcoin has reached a potential accumulation phase. The sentiment, as represented by the 30-day simple moving average, shows a slow but steady improvement in trader interest. The next significant resistance is expected around $92,000, consistent with previous levels. Large institutional wallets accumulating Bitcoin during negative profit margins have also contributed to price stabilization and minimized downside risk.



Other News from Today