Bitcoin Supply In Loss Crosses Critical Threshold — Bullish Reversal Next?
Bitcoin's price has stabilized around the $60,000 mark after a significant decline, with recent on-chain data indicating a potential bullish reversal as the Bitcoin Supply In Loss metric reaches critical levels. This suggests that many investors are holding Bitcoin at unrealized losses, reflecting systemic fear in the market.
WPN Brief
- What Happened
Bitcoin's price has stabilized around the $60,000 mark after a significant decline, with recent on-chain data indicating a potential bullish reversal as the Bitcoin Supply In Loss metric reaches critical levels. This suggests that many investors are holding Bitcoin at unrealized losses, reflecting systemic fear in the market.
- Why It Matters
The current situation is crucial for Bitcoin as it may signal a bottoming out phase, potentially leading to a recovery in price. Analysts like Ali Martinez are optimistic about a rebound, which could restore investor confidence.
- The Bigger Picture
The broader cryptocurrency market is experiencing heightened volatility, with significant sell-offs leading to liquidations of long positions and concerns about market integrity. The recent downturn has prompted discussions about potential support levels and the overall health of the market, with some analysts suggesting a possible floor near $50,000.
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9 reports across the wire
Bitcoin Price In ’Vulnerable Position’ As 2022 Playbook Repeats – Is $54,000 Next?
While Bitcoin (BTC) trades at its lowest levels in months, some market watchers have warned that the leading crypto may be preparing for another major drop as it retests a critical technical area that has historically marked a turning point. Related Reading: Zcash Fixes Critical Orchard Vulnerability As ZEC Holds $600 Support Bitcoin Tags Key 200‑Week SMA After Four Years After falling 15% over the past four days, Bitcoin is attempting to reclaim the $64,000 level as support. The flagship crypto had been trading between $64,000-$82,000 since the early February crash, holding above the upper half of the range for nearly two months. However, this week’s broader volatility pushed BTC toward the range’s lower boundary for the first time in months, reaching a four-month low of $61,383 on Wednesday night. Amid this performance, market observer Rekt Capital highlighted that the cryptocurrency had tagged the 200-week Simple Moving Average (SMA) for the first time in this bear cycle, which may signal that another correction is coming. As he explained, deviation below this SMA has “historically been the key to building out a Bear Market bottom formation.” In June 2022, Bitcoin reached this level during its bear market correction, quickly losing it as support on the weekly timeframe. Following the initial drop below the 200-week SMA, the leading crypto traded sideways, briefly retesting this level before continuing its descent to its late 2022 bear market bottom. Now, BTC has reached this key SMA nearly four years later, suggesting a drop to new lows if the 2022 playbook repeats. The analyst noted that Bitcoin has been rejected from a critical area and has broken a key level, another similarity to past bear market corrections. According to the post, BTC was rejected from the base of the Macro Triangle after failing to break past the $82,500 area, revisited the 50-Month EMA during the recent drop, and is currently breaking down from this EMA, a setup that has repeated each cycle before the market bottom. BTC’s $60,000 Support About To Give In? Rekt Capital pointed out that Bitcoin rallies from the $60,000 region have progressively weakened since 2024, signaling deteriorating support. While the price surged 113% from this area during the mid-2024 rally, the February 2026 retest only generated a 38% move. Now, the cryptocurrency has bounced 4% so far, “but it’s very likely that the rebound from here will be even weaker,” the analyst stated, adding that the “$60,000 area will be completely lost as support over time.” He also stated that during bear markets, Bitcoin tends to form multi-month price clusters, followed by new Macro Lower Highs before distributing from the clusters to reach new lows. “The good news is there are 1-2 such clusters left in this Bitcoin Bear Market, with the Bear Market Bottom being the final cluster,” he concluded. Related Reading: Ethereum Ready For The ‘Final Dip’? Analysts Call For New Lows As Price Retests $1,900 Meanwhile, Ali Martinez affirmed that the recent breakdown from the $72,000 support has left Bitcoin “in a vulnerable position,” as it opens the door for a 25%-30% correction based on the MVRV Pricing Bands. The analyst previously noted that Bitcoin has consistently bottomed between the 1.0 and 0.8 MVRV Pricing Bands over the past decade. Now, the next major area of support is between $54,000 and $50,000, where the 1.0 pricing band is located. Featured Image from Unsplash.com, Chart from TradingView.com
Bloodbath For Bulls: $623 Million In Bitcoin Longs Liquidated
Bitcoin's price has experienced a significant decline, leading to the liquidation of over $623 million in long positions as it dipped below critical thresholds, notably around $61,300. This selloff was exacerbated by a broader bearish trend in the cryptocurrency market, with Bitcoin struggling to maintain its value amid increasing selling pressure.
Bitcoin Testing A Critical Support After Sharp Market-Wide Selloff
Bitcoin is currently testing a critical support level after a sharp market-wide selloff that has seen its price drop significantly, with recent trading hovering around $60,000. Analysts note that this decline follows a broader bearish trend, leading to increased selling pressure and liquidations of long positions.
Bitcoin’s “Electrical Cost” Suggests Possible Bear Market Floor Near $50,000 — Analyst
Bitcoin's price has recently shown a bearish trend, with analysts expressing concerns about its future trajectory. Ted Pillows, an on-chain analyst, suggested that the Bitcoin Electrical Cost model indicates a potential market bottom near $50,000, countering speculations of a drop to $25,000.
Bitcoin Long-Term Holders Lead $1.35 Billion Capitulation: Glassnode
Glassnode reported a significant capitulation event in the Bitcoin market, with long-term holders contributing to a $1.35 billion loss as the cryptocurrency's price faced a sharp decline. This downturn is part of a broader trend, with Bitcoin's value dropping below $66,000 amid increased market volatility and liquidation pressures.
Bitcoin Exchange Supply Keeps Falling: What Happens If Demand Returns?
Bitcoin's price has recently surged above $65,000 after a significant 12% decline over two days, prompting a reevaluation of market stability. XWIN Research Japan's on-chain analysis reveals underlying signals that complicate the current market dynamics, indicating potential shifts in supply and demand.
Bitcoin most oversold since 2020 crash: Can BTC rebound to $70K next?
Bitcoin's recent oversold Relative Strength Index (RSI) indicates a potential rebound, reminiscent of previous market recoveries in 2020 and early 2026, with analysts speculating a return to the $70,000 mark.
Bitcoin Falls Below $66K As Short-Term Holder Stress Reaches February Levels
Bitcoin's price has fallen below $66,000, marking a significant decline as selling pressure and uncertainty increase in the cryptocurrency market. Short-term holders are realizing losses at a pace not seen since early February, with the 'STH Loss to Binance' metric indicating a sharp downturn in market sentiment. This decline follows a series of bearish trends, including forced liquidations and significant movements from Mt. Gox-linked addresses.
Bitcoin Crashes Near $60,000: $62B In Treasuries Erased, Analyst Sees Potential Bottom Ahead
Bitcoin's price has plunged to around $60,000, marking a significant decline of approximately 52% since its all-time high of $126,000 last October. This drop has intensified bearish sentiment in the broader cryptocurrency market, with a notable sell-off leading to $62 billion in treasury stocks being erased. The recent activity by Strategy, which sold Bitcoin for the first time in nearly four years, has further unsettled traders.