Bitcoin has entered a loss zone — CryptoQuant

aSOPR reflects whether bitcoins are being sold on average at a profit or at a loss. A value below 1 indicates that market participants are realizing losses. The current decline mirrors the situations in 2019 and 2023, when the leading cryptocurrency experienced deep corrections accompanied by massive coin sell-offs. At present, 42.85% of the total Bitcoin supply is in the loss zone, specialists calculated.

“Repeated formation of lows in the 0.92–0.93 range has historically served as a marker of the capitulation phase and structural market reset. Particularly concerning is the absence of a rebound to the 1 level, which we observed during interim corrections. The current downturn appears persistent, significantly increasing the risks of transitioning into a full-scale bear trend,” CryptoQuant noted.

According to experts, the situation looks less like a temporary dip and more like a potential shift in the market cycle: if aSOPR fails to return to the 1 mark in the coming weeks, the probability of entering a prolonged bearish phase will increase. A trend reversal would require further declines in Bitcoin’s price. Such a scenario would fully flush out weak holders from the market and complete the loss-realization cycle, creating conditions for future growth, analysts added.

However, according to CryptoQuant, a price reversal should not be expected yet, as selling pressure has not reached a critical level. Experts believe that Bitcoin’s absolute bottom will be reached at $55,000.

See also: "TradingShot analyst calculates Bitcoin’s “optimal point”"

#Bitcoin (BTC) #Investment

Share: