Bitcoin's unrealized loss ratio has exceeded 39%, according to CryptoQuant analyst @AxelAdlerJr, following a recent decline in Bitcoin's price. This indicates that a significant portion of Bitcoin holders are currently experiencing unrealized losses. The market is now entering a phase of active pressure, though it has not yet reached a full capitulation stage. Historical data suggests that when this ratio surpasses 40%, it often coincides with bear market lows, as seen in 2018 and 2022. This could imply that the market is nearing a cycle low, with weak positions being gradually unwound.
Bitcoin's Unrealized Loss Ratio Surpasses 39%, Signaling Market Pressure
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