The long-term holders suffer loss when the crypto space is heading towards the pinnacle of the bear markets
Meanwhile, the BTC prices are assumed to drop another 25% while the altcoins by another 40% which could mark the bottom of the current bear cycle
A rise in the long-term holders’ numbers indicates confidence in the project over an extended timeframe. Ever since the market ignited a recovery phase in 2018, the number of long-term holders has been rising constantly. These holders remain largely unaffected by the live market trends as they believe in the profits gained over the next couple of years.
In a recent update, the Bitcoin long-term holders are incurring an acute loss as the BTC price continues to head towards lower support. Despite a couple of attempts to regain the bullish momentum, the bears, who maintain a huge dominance at the moment, dragged the price lower. Hence causing more than 30% of the unrealised loss to the long-time holders.
As per a leading analytical platform, Glassnode, the holders are under acute financial stress with an average unrealized loss of 33% and an MVRV score of 0.67. Previously, during the 2018 bear market bottom, these holders were under 36% of unrealized loss, but the MVRV score was 0.64. MVRV is nothing but the ratio between the market value & the realized value. Meanwhile, if the BTC prices plunge hard, it may increase the average unrealized loss to close to 40%, which is the highest in history.
So now the question arises: where will the Bitcoin price find its bottom?
Bitcoin price witnessed a couple of steep drops in the near past that compelled the price to remain in bearish captivity. However, the market sentiments continue to remain extremely uncertain due to which the pressure over the crypto is speculated to remain, indefinitely. Therefore, if the BTC price, presently is consolidating within a narrow range, it may be a signal of a bearish hammer which may hit anytime from.
il Capo of Crypto, a popular analyst who has predicted the levels where the BTC price will be hammered initially, is forecasting bearish signals for the crypto once again. According to the analyst, the price was hammered when it faced rejection at $17,622, and hence the descending trend is speculated to remain for a long time, compelling the price to bottom hard around $12,000.
The overall market sentiment has turned extremely bearish ever since multiple platforms have restricted users’ activity, while some have filed for bankruptcy. Therefore, the crypto winters may be extended beyond December 2022 and may find their pinnacle somewhere in the first few weeks of 2023.
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