Bitcoin's recent price correction has led to unrealized losses reaching 16% of its market capitalization, a level reminiscent of severe bear market phases. This indicates that a significant portion of Bitcoin holders are currently at a loss. The data, provided by Glassnode, highlights the growing market stress as Bitcoin's price has retraced 11% over the past week and 23% over the past month. The current market structure mirrors conditions from early May 2022, a period marked by heavy selling and negative sentiment. At that time, Bitcoin's price fell sharply, leading to a rise in unrealized losses. While this does not guarantee further declines, it suggests that Bitcoin may be entering the early stages of a broader bear market, with long-term holders remaining resilient but short-term participants feeling the strain.