Bitcoin price rebound stops at $103K with 30% of BTC supply ‘underwater’

💡 DMK Insight

Bitcoin’s unrealized losses hitting nearly a third of its supply is a major red flag for traders right now. This level of unrealized loss suggests a significant portion of holders are underwater, which could lead to panic selling if BTC dips further below $100,000. Historically, when large unrealized losses accumulate, it often precedes a wave of selling pressure as traders look to cut losses. This could also trigger a psychological barrier, making it harder for BTC to reclaim previous highs. Keep an eye on the $100,000 level; if it breaks, we might see a cascade effect, impacting not just Bitcoin but also altcoins that typically follow its lead. On the flip side, this situation could present a buying opportunity for those looking to accumulate at lower prices, especially if we see a bounce back. Watch for volume spikes around this level to gauge market sentiment. If we see significant buying interest, it could indicate a potential reversal. But until then, caution is warranted as the market navigates these unrealized losses.