Originally published on: June 21, 2022
Recent data from Glassnode reveals that over 50% of Bitcoin addresses are still showing profits despite the current market conditions. This raises concerns about the ongoing “bear market” and its potential impact on investors.
As Bitcoin took a dip to $17,600, hitting lows not seen in 19 months, analysts are predicting a retracement of up to 84.5% from its all-time highs. The market sentiment is mixed this year as historical trends suggest that previous bull market peaks were not as high as expected.
The figures from Glassnode indicate that in past market bottoms, less than half of Bitcoin addresses were in profit, signaling that there may be further downside potential. This suggests that the current downtrend may not have reached its full extent yet.
Panic seems to be brewing among investors, with realized losses hitting a record $4.76 billion in a single day on June 13. This trend indicates that holders are becoming increasingly anxious about the market direction and are willing to sell at a loss.
When it comes to market reversals, senior analyst Dylan LeClair suggests that a significant amount of selling, particularly from retail investors and derivatives traders, may be required before a bottom is established. He highlights the importance of monitoring the derivatives market for signals of a potential turnaround.
As the market remains uncertain, it is crucial for investors to conduct their own research and exercise caution when making trading decisions. Keep up with the latest insights and trends in the cryptocurrency market to stay informed and make informed investment choices. Subscribe to our Markets Outlook newsletter for exclusive analysis and updates.
