Short-Term Bitcoin Whales Are Always Mounting Unrealized Losses – What’s Happening?
Bitcoin is still hampered by the ongoing volatility in the cryptocurrency market, keeping its price below the $70,000 level for the past few days. As the price of BTC gradually declines, short-term whale owners are starting to feel the heat, as their unrealized losses increase dramatically.
Unrealized Losses Increase With Bitcoin STH Whales
After a long term low cost performanceBitcoin’s unrealized losses are increasing. A recent report from Darkfost, a market expert and author of the CryptoQuant platform, attributed this strong increase in unaffordable losses to short-term whale owners. On-chain data shows that the level of unrealized losses incurred by these new whales is increasing more and more in relation to the rates, which points to increasing pressure among some of the largest and most powerful participants in the market.
As Bitcoin tries to regain its high momentum, these high-value wallets, which are often very sensitive to recent price changes, are currently sitting on heavy paper losses. Right now, Darkfost has it highlighted that the loss of these investors entering the market during the last six months is estimated at $26 billion.
If you zoom in on the chart, this number ranks among the most important levels seen this year. The highest rate was recorded on February 6, which coincided with the drop in the price of BTC below the level of $ 60,000, increasing the unrealized loss during the period to about $ 32 billion.
Darkfost noted that whales those who joined the market later in the cycle are currently suffering the effects of the Bitcoin price drop. Although these investors holding positions at a loss is not necessarily positive, it can erode confidence and reinforce moral instability.
Such a trend has the potential to trigger emotion-driven decisions in times of renewed market volatility. It is given rising pressure below the surfaceshort-term whale behavior may have a significant impact on the next significant movement of Bitcoin.
No Real BTC Rally In Sight Yet
Bitcoin on-chain key indicators reveal a conflicting signal about the current market cycle. In the post office on social media platform X, CW, data analyst and crypto investor, the BTC On-chain Activity Strength Signal metric shows that the real rally has not advanced in this cycle.
The short-lived rise was driven by speculative momentum, but there are no structural indicators that tend to indicate a true long-term rally. According to experts, everything that has happened so far, since a great upward movement for a sharp pullback, it is a preparation for the upcoming rally, which is expected to start soon.
The CW compared this huge upcoming increase to the strong rally experienced in the 2017 cycle. In this case, the meeting may be larger because collection of whales is at a high level, adding that the actual meeting that is about to start will be big.
Featured image from Pixabay, chart from Tradingview.com
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