Bitcoin continues to hover near the lower end of its recent trading range, as any attempts at price recovery are quickly countered by selling from investors who acquired the leading cryptocurrency near its all-time high in early October. According to findings from crypto analytics firm Glassnode, a range of indicators suggests that the market has entered a “mild bearish phase.” This period is characterized by modest capital inflows that are outstripped by persistent selling pressure from larger holders.
Glassnode observed that the market remains confined within what it describes as a “weak but bounded range.” In such an environment, the passage of time starts to act as a detrimental factor, particularly as unrealized losses mount for many investors. Notably, the relative unrealized losses have surged to 4.4%, marking the highest level seen in nearly two years. For much of that timeframe, these losses generally stayed below 2%. This shift signals a broader transition in market sentiment, moving from earlier exuberance to a landscape filled with “elevated stress and uncertainty.”
As the cryptocurrency market grapples with these dynamics, analysts are closely monitoring trends and sentiment shifts among investors, particularly those who bought in during the market’s peak. The prevailing mood reflects anxiety among traders, as the potential for further declines weighs on their investment strategies.
