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Bitcoin recently experienced a sharp sell-off that nearly dragged the price down to the $60,000 level before a swift bounce followed. Dip buying helped BTC stabilize near current levels, but this rebound alone does not confirm a trend reversal.  Instead, the move appears more like a temporary pause within a broader corrective phase, leaving investors questioning whether further downside lies ahead. Sponsored This Is What Bitcoin Signals Suggest One defining characteristic of bear markets is elevated Relative Unrealized Loss, which measures the dollar value of underwater coins relative to total market capitalization. During Bitcoin’s drop toward $60,000, this ratio surged to roughly 24%. That level sits well above the typical bull-bear transition zone, placing the market firmly in bearish territory. While the metric signals an intense bear regime, it remains below extreme capitulation levels historically seen above 50%. This suggests Bitcoin is undergoing an active capitulation process rather than reaching its final bottom. Selling pressure is widespread, but not yet exhausted, implying further volatility as the market seeks equilibrium. Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here. Bitcoin Relative Unrealized Loss. Source: Glassnode Another lens into investor behavior is the distribution of Bitcoin supply among wallet sizes. Data shows wallets holding less than 0.01 BTC have been steadily increasing their share of supply. This group represents small retail participants who often react emotionally to price swings but are currently accumulating. Sponsored At the same time, wallets holding between 10 and 10,000 BTC have shown mild net distribution during the dip. This divergence is notable because public sentiment on social platforms remains overwhelmingly bearish. Despite negative commentary, small traders are quietly adding exposure, signaling belief that current prices offer value. Bitcoin Smart vs Small Retail Money. Source: Santiment This imbalance suggests optimism has not fully reset.…

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Filed under: News - @ February 8, 2026 4:23 am