The post Bitcoin’s market tilts towards reset zone as realized loss gap widens – Meaning? appeared on BitcoinEthereumNews.com.

Bitcoin’s long-term holders [LTH] continue to realize profits, but momentum is slowing down Short-term holders [STH] dominate loss realization, indicating weaker near-term demand A shifting balance in Bitcoin’s [BTC] on-chain dynamics revealed that short-term holders are now shouldering nearly all of the realized losses – A trend that could signal a broader market reset. Meanwhile, long-term holders remain profitable. Even though their selling momentum has been tapering lately.  Short-term holders dominate Bitcoin realized losses According to Glassnode, over 80% of realized value in the Bitcoin market can be currently attributed to short-term holders [STHs] who acquired their coins within the last 155 days.  In fact, the chart highlighted a sharp surge in realized losses among STHs, coinciding with Bitcoin’s pullback from above $100k to its press time level around $83.7k. Source: Glassnode This capitulation behavior suggested that recent buyers, who entered during Bitcoin’s parabolic rally, have been exiting at a loss amid heightened volatility. The realized profit/loss imbalance hinted at a strong emotional reaction from newer participants and waning confidence in the crypto’s immediate upside. Long-term holders still in profit, but slowing Despite Bitcoin STHs absorbing a bulk of the losses, long-term holders [LTHs] remain a consistent source of profit realization. However, the trend has been weakening lately. In fact, the net difference between long-term profits and short-term losses has been narrowing too, as shown in the second chart. Source: Glassnode This “profit-loss equilibrium” reflects a neutral zone where inflows cool, market demand slows down, and price momentum stalls. Historically, such conditions have preceded consolidation phases or minor corrections on the charts.  Price action reflects sentiment shift in Bitcoin On the 12-hour chart, Bitcoin slipped below the 50-day MA of $85,064, trading at $83,794 at press time. The technical breach and weakening volume supported the on-chain story of waning bullish…

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Filed under: News - @ March 30, 2025 12:07 am