The value of Bitcoin has been stuck inside the $81,000 to $86,000 consolidation range over the past week, showing a high level of indecisiveness between the bulls and bears. While most on-chain indicators are painting a bearish image for the premier cryptocurrency, the newest piece of information suggests that the bull run won’t be over just yet.

BTC Investors Not Yet In Full Panic Mode: Blockchain Firm

In a recent post on the X platform, blockchain analytics firm Glassnode revealed that a particular class of Bitcoin holders often called the “short-term holders” (STH) are facing increasing market pressure. This on-chain statement is predicated on the worth of unrealized losses of this investor cohort.

For clarity, an unrealized loss refers to 1 that continues to be on paper, because the investor continues to be holding on to and selling an asset (with a declining value). A loss only becomes “real” or “realized” when the holder sells the asset at a worth lower than the acquisition price.

In keeping with Glassnode, the unrealized losses of Bitcoin investors have been climbing in recent weeks, specifically pushing the short-term holders toward a major +2σ threshold. The STH Relative Unrealized Loss metric hitting the intense +2σ threshold has been related to increased selling pressure up to now.

Nonetheless, Glassnode noted that the dimensions of the STH losses still falls inside the range typically observed in a bull market. Specifically, the magnitude of those losses pales compared to the market-wide sell-off witnessed in 2021, suggesting that the bull cycle won’t be done yet.

Source: @glassnode on X

To further illustrate this, Glassnode revealed that the rolling 30-day realized loss for Bitcoin’s short-term holders has now surpassed $7 billion, representing the most important sustained loss event in the present cycle. Despite the importance of this figure, it continues to be far less severe than the capitulation events seen firstly of past bear markets.

For example, Bitcoin’s realized losses rose to as high as $19.8 billion and $20.7 billion through the major price corrections in May 2021 and 2022, respectively. Considering that the realized losses are still well below past capitulation events, there may be a likelihood that the market has not yet reached a full-scale panic mode.

Bitcoin Price At A Glance

As of this writing, the worth of Bitcoin stands at around $84,300, reflecting a 0.3% increase up to now 24 hours. In keeping with data from CoinGecko, the flagship cryptocurrency is down by merely 0.6% up to now seven days, emphasizing the choppy state of the market.

The value of BTC on the day by day timeframe | Source: BTCUSDT chart on TradingView

Featured image from iStock, chart from TradingView

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