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What Does On-Chain Data Tell Us After Today’s Latest Bitcoin Price Drop?
As selling pressure intensified across the cryptocurrency market, Bitcoin fell below the $80,000 level.
While Bitcoin traded at around $79,650 over the past 24 hours, the derivatives market experienced a sharp wave of liquidations. According to the data, positions worth a total of $158.53 million were liquidated during the last 24 hours, of which $142.59 million came from long positions. Short liquidations accounted for $15.93 million. As a result, approximately 89.9% of all liquidations were long positions, pointing to a sudden panic sell-off in the market.
Chart showing the relationship between Bitcoin liquidations and price action.
The atmosphere of fear in the market was also reflected in investor sentiment. The Crypto Fear & Greed Index, closely monitored by the cryptocurrency market, dropped to 42, entering the “fear” zone. A day earlier, the index had been in the “neutral” zone at 49, while the reading of 21 recorded last month indicated a phase of “extreme fear.”
On-Chain Data Still Suggests Bitcoin Has Not Lost Its Long-Term Bullish Structure
Despite the recent decline, on-chain data indicates that Bitcoin has not yet lost its long-term bullish market structure. Bitcoin’s realized price currently stands at approximately $54,300. This metric reflects the average cost basis of investors in the market. The fact that the current price remains above this level suggests that the market as a whole is still in a profit-taking phase and that long-term investors’ cost levels continue to serve as a significant support zone.
Chart showing Bitcoin’s realized price data.
Bitcoin’s MVRV (Market Value to Realized Value) ratio currently stands at 1.48. Historically, levels above 3.7 have indicated overvaluation and bubble risk, while levels below 1 have been associated with macro market bottoms. Current levels suggest that the market remains far from excessive euphoria and presents a more balanced picture compared to previous cycles.
Chart displaying the BTC MVRV ratio.
Meanwhile, Bitcoin’s Net Unrealized Profit/Loss (NUPL) ratio stands at 0.33. This data indicates that a significant portion of investors are still in profit, although the market has not yet entered a phase of “extreme euphoria.”
Chart displaying BTC NUPL data.
See also: "Bitcoin ETFs Recorded the Largest Outflow in More Than 3 Months — Around $635 Million"
