In a surprising turn of events, Bitcoin has broken below the $60,000 support level for the first time in two months. This comes after a period of euphoria that was fueled by the launch of Spot Bitcoin ETFs in the US market earlier this year. The current consolidation of Bitcoin’s price indicates that the euphoria may be fading, according to a recent report from Glassnode.
Glassnode’s report highlights a shift in market sentiment, with investors now heavily weighted towards selling. The percentage of addresses holding losses has increased, putting pressure on Bitcoin’s price. At the same time, the percentage of addresses making a profit has fallen from over 99% to 86%, reflecting a change in investor behavior.
According to Glassnode’s Net Unrealized Profit & Loss (NUPL) metric, Bitcoin has been in a euphoria phase for the past seven months. However, this euphoria has cooled off significantly in the past two months, following a correction in the market. The report notes a “distinct uptick in net outflows” across all wallet sizes in April, indicating a sell-side pressure among traders.
While a pullback after a steep price rise is considered healthy by many analysts, the current fear rating among investors may be cause for concern. Short-term holders are facing losses, with many holders entering into the loss zone. However, long-term holders are still holding strong and are waiting for the halving effect to take effect.
At the time of writing, Bitcoin is trading at $59,899, down by 5.35% in the past 24 hours. According to crypto analyst Ali Martinez, $59,800 is a key price level to watch, as Bitcoin has historically bounced above the STH realized price. With Bitcoin’s price falling to $57,000, investors are keeping a close eye on market dynamics.
The euphoria surrounding Bitcoin may be fading as the market undergoes a period of consolidation and correction. While some investors may be worried about the current market sentiment, others see it as a healthy pullback after a period of significant price rise. As Bitcoin continues to navigate through these challenging times, investors are advised to conduct their own research and make investment decisions carefully.
