High percentage of Bitcoin, ETH, SOL held at a loss: Is it a bear market sign?

💡 DMK Insight

With 40% of Bitcoin holders underwater and ETH at a similar 40%, market sentiment is shaky right now. This loss threshold indicates a significant portion of the market is feeling the pressure, which could lead to increased volatility as traders react. For ETH and SOL, the 75% loss figure for SOL is particularly alarming; it suggests a deeper bearish sentiment that could trigger further sell-offs. If SOL continues to struggle, it might drag ETH down with it, especially if traders start to panic. Watch for key support levels around $2,800 for ETH and $130 for SOL. If these levels break, we could see a cascade effect that impacts broader market sentiment. On the flip side, this could also present a buying opportunity for those looking to accumulate at lower prices, especially if we see signs of recovery. Keep an eye on the upcoming weekly close—if ETH can hold above $2,900, it might signal a short-term rebound. But if it fails, expect more downside pressure.