Bitcoin supply in profit heads to ‘true bear market’ levels

💡 DMK Insight

With 8.2 million Bitcoin currently at a loss, traders should pay attention to market sentiment shifts. This figure, while significant, is still below the levels seen during the 2022 bear market, suggesting that the current selling pressure might not be as intense as it was previously. However, it raises questions about whether we’re nearing a capitulation point or if further downside is possible. If Bitcoin starts to break key support levels, particularly those established during the last bear cycle, we could see a wave of panic selling that might push more holders into the red. Keep an eye on the 2022 loss levels as a benchmark for potential market reactions. On the flip side, this could also present a buying opportunity for those looking to accumulate at lower prices, especially if we see a reversal in market sentiment. Watch for any bullish signals on the daily charts, particularly if Bitcoin can reclaim significant resistance levels. The next few weeks will be crucial in determining if we’re in for a prolonged recovery or another downturn.