is showing some positive signs above the $20k support. At the time of writing, trading around the $20,300 mark. Even so, there is still a lot of risk as on-chain data shows investors exiting their positions over a 3-day period, accepting losses after buying at much higher prices.

Price bottom prediction Bitcoin

Market participants is very close to historically high financial pain thresholds. Investors got out of position worth a record $7.3 billion in the past 3 days according to the analysis company Glassnode. In fact, the last 3 consecutive days recorded the largest real loss in the history of BTC in US dollars.

Real Loss | Source:

According to the research firm , when the price Bitcoin investors quickly sold about 555,000 BTC in the $23k – $18k price range. In it, many people bought at much higher prices. Specifically, loss from $1.5 billion to $2 billion per day.

Real-time unspent price distribution by entity | Source: Glassnode

What is the “loyal” holder doing?

Even long-term holders bid farewell to the king . Notably, long-term (LTH) holders sold 178k BTC, of which some were purchased at ATH of $69k in November 2021. This group of sellers lost 75% of their investment.

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Total supply held by LTH | Source: Glassnode

Other data from the analytics firm shows that LTH also capitulated deeply during this period of record losses.

“Through investigation of profits and losses ofolder long term sending coins to exchanges, we can see deep capitulation. Some Bitcoin LTHs even bought at the top of $69k and sold at the bottom of $18k, taking a loss of -75%. LTH total losses represent 0.0125% market cap per day.”

Besides, short-term holders (STH) also suffered heavy losses. STH-SOPR has reached the equivalent of the bear market capitulation event of November 2018.

bitcoin

STH-SOPR | Source: Glassnode

Almost all wallet groups from “shrimp to whale” have large unrealized losses, worse than the whole of March 2020. Currently, the least profitable wallet group holds 1-100 BTC and has an unrealized loss equal to 30% market cap.

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Unrealized net profit/loss by balance range | Source: Glassnode

Not stopping there, the price slide below the 2017 ATH at $20k led to a different story. Bitcoin may be nearing a temporary bottom because This has historically bottomed as its Profitable Supply Percentage (PSP) hit 40% to 50%.

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bitcoin

Profitable percentage of supply | Source: Glassnode

It is obvious that the confidence of BTC investors is being rigorously tested under such conditions.

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