Bitcoin’s chart has worsened in the last 24 hours, with the king currency dropping by 8%. After reaching a high of $39,820, the coin’s price began to fall. The majority of the cryptocurrency market is trading in red with ETH, XRP, and SOL losing more than 6 percent.
Bitcoin prices are currently trading in a closely concentrated region after failing to break through the $39,800 price barrier. It’s too early to judge whether the bulls have fully returned to the market.
If the bulls maintain their push, Bitcoin Price may be able to reclaim the $40,000 price level in future trading sessions. Bitcoin buyers must remain in the market in order for the coin to trade successfully on the upside.
Possible Bear Market Ahead?
Glassnode’s most recent weekly analysis paints a picture of a possible bear market floor. Bitcoin has plunged to its lowest level since mid-February due to an increasingly dire economic environment.
The analysis points to a concerning global economic trend brought on by inflation and tighter monetary policies. With rising uncertainties, equities, bonds, and cryptocurrency markets all witnessed big losses this week.
With these variables in mind, market profitability has plummeted from roughly 95 percent to a little over 70 percent. Profitability was lowered to a stunning percentage of investors between 45 and 57 percent during the previous bear runs in 2018-19 and March 2020.
The introduction of Short Term Holders has a further impact on the Bitcoin market (STHs). According to the Glassnode data, STHs have amassed a significant quantity of BTC in the recent three months. They are thought to be the most vulnerable to market panic and discontent when it comes to selling.
The STH-MVRV oscillator is -0.75 standard deviations from the mean, according to the statistics below. This indicates that the STHs will face substantial financial hardship. STHs have an on-chain cost base of $46,910, implying an unrealized loss of -17.9% on the average coin owned by an STH.