New data from the market intelligence firm Glassnode suggests that Bitcoin ( BTC ) could be nearing an early bear market. In a new thread on the social media platform X, Glassnode says that the crypto king is flashing signs that historically predate its entering into a bearish phase. According to the crypto analytics platform, short-term holders hanging on to unrealized losses relative to BTC’s current price are analogous to the early bear market conditions present during Bitcoin’s previous cycles. “Bitcoin unrealized losses normalized by percentage drawdown show that short-term holders are already holding substantial losses relative to the current correction depth – comparable to early bear market conditions in past cycles.” Source: Glassnode Glassnode goes on to note that while long-term holders are in profit, market conditions could cause them to see their profits dwindle, another sign of an upcoming bearish phase. “On the other hand, long-term holders (LTH) are still broadly in profit, but as BTC top buyers age into LTH status, loss absorption may rise. Historically, this shift often marked the confirmation of a bear market, though no such regime is evident yet.” Source: Glassnode Short-term Bitcoin holders are traders who have held on to their tokens for less than 155 days, while long-term holders are defined as those who have kept their digital assets inactive for 155 days or longer. According to Glassnode, one metric, which measures the directional dominance of value flowing in or out of a network, shows that the top crypto asset by market cap is at a crucial crossroads in terms of market direction. “Meanwhile, volatility-adjusted net realized profit/loss for BTC has reverted to its long-term median. This historically marks the boundary between bull and bear regimes, placing the market at a critical juncture for determining direction.” Source: Glassnode Bitcoin is trading for $84,557 at time of writing, a fractional decrease during the last 24 hours. Follow us on X , Facebook and Telegram Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post On-Chain Metrics Suggest Bitcoin (BTC) Could Be Approaching Early Bear Market Phase: Glassnode appeared first on The Daily Hodl .
