Bitcoin Sth achieved losses far from the 2021 levels – is the Bull still going?

Bitcoin prices have been locked within the consolidated range of $81,000 to $86,000 over the past week, indicating a high level of indecisiveness between the Bulls and the Bear. While most chain indicators portray bearish images for the best cryptocurrency, the latest data suggests that the Bull Run may not be over yet.

BTC Investors Are Not Full Panic Mode Still: Blockchain Company

In a new post on the X platform, blockchain analytics firm GlassNode revealed that a certain class of Bitcoin holders known as “short term holders” (STH) are facing increased market pressure. This on-chain observation is based on the value of unrealized losses for this investor cohort.

To be clear, unrealized losses refer to people who are still on paper because investors are still holding and selling assets (decreasing in value). If the owner sells an asset at a value lower than the purchase price, the loss is either “real” or “realized.”

According to GlassNode, unrealized losses for Bitcoin investors have risen in recent weeks, pushing short-term holders in particular to a significant +2σ threshold. The STH relative unrealized loss metric that strikes an extreme +2σ threshold is associated with increased past sales pressures.

However, GlassNode noted that the size of the STH loss is still within the range normally observed in the bloom market. Specifically, the magnitude of these losses pales in comparison to the overall market sale seen in 2021, suggesting that the bull cycle has not yet been made.

Source: X @GlassNode on x

To further explain this, GlassNode revealed that the 30-day deferred loss for short-term Bitcoin holders currently exceeds $7 billion, representing the largest sustained loss event in the current cycle. Despite the importance of this number, it is far less severe than the surrender events seen at the start of the bear market in the past.

For example, realised losses for Bitcoin rose to $19.8 billion and $20.7 billion during the major price corrections in May 2021 and May 2022, respectively. Given that realised losses are far below past surrender events, it is possible that the market has not yet reached full-scale panic mode.

Bitcoin price at a glance

At the time of writing, Bitcoin price was around $84,300, reflecting a 0.3% increase over the past 24 hours. According to Coingecko data, flagship cryptocurrencies have fallen by just 0.6% in the past seven days, highlighting the market’s choppy state.

BTC Prices in Daily Time Frame | Source: BTCUSDT Chart in TradingView

ISTOCK featured images, TradingView chart

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