The analytical company in the Glassnode chain revealed in the report how this historical confirmation of bear has not yet appeared in the current Bitcoin cycle.
Bitcoin unrealized loss has not increased yet for long -term owners
In your last weekly report, Glass knot He discussed the trend of unrealized loss for the two main Bitcoins kohort. “Unrealized loss” is an indicator in the chain that it measures the total loss, which BTC transfers as a whole.
Metric works by browsing the history of the transfer of each coin in circulation to see what price has recently been moved. If this previous commercial price is higher than the current spot price for any token, then this particular token adopted a net loss.
The indicator has a difference between two prices to find the exact measure of this loss. Then he adds this value to all coins with a circulating power supply to find the sum of the network.
In the context of the current topic, the usual version of the unrealized loss is not interested, but rather a modern variant known as an unrealized loss loss. As the analytical company explains,
Because the market is still shrinking, it is reasonable to expect that the absolute size of unrealized losses will raise. To include and normalize this, together with the payments of different sizes, we are introducing a modern variant of the record: Unrealized loss of paymentwhich expresses the losses maintained in BTC conditions compared to the percentage inheritance compared to the highest level.
First of all, here is a chart that shows the trend of this Bitcoin indicator especially for low -term owners:
“Short -term owners” (STHS) relate to Bitcoin investors who have bought their coins in the last 155 days. BTC is currently trading at levels where most of this window was, so these owners would be mainly in a state of loss.
An unrealized loss for a percentage of payment shows this trend because its value has increased recently. Interestingly, the indicator is already at a high level, which is comparable to the values noticeable at the beginning of previous bear markets.
While Sths have significant losses, the same is not true for the other side of the market: “long -term owners” (LTH).
Those investors who have been holding their coins for over 155 days ago do not incur any unrealized losses at all. In the past, LTH generally recorded a raise in loss during the switching to bears.
As the report notes,
Historically significant extensions of unrealized losses among long -term owners often meant confirmation of market conditions, although with a delay at the top of the market.
So far this signal has not appeared for Bitcoin. However, it should be remembered that the best buyers will soon promote LTH. When this happens, the loss of the group is likely to register growth.
BTC price
Bitcoin observed a break in the recovery rally, because its price started to side traffic around USD 85,000.
