The price of bitcoin (BTC) has traded between $29,250 and $31,700 so far this week, reflecting that a higher floor has momentarily formed than before. For eleven days, the cryptocurrency has not touched the USD 28,000 range, the minimum it had sustained for the previous three weeks.
However, the rise of the floor has not been enough to put an end to the bad moment in which most of the traders find themselves. Current prices are still close to the lows that the cryptocurrency has had in the last year and a half. That’s why, most 2021 and 2022 bitcoin buyers have unrealized losses.
Why “not done”? This term is used to identify those people whose portfolios are in losses (negative numbers), but have not materialized them because they have not sold their funds. They continue to store their investment, possibly waiting for the price to recover or rise to new all-time highs.
In this way, if the price of the cryptocurrency rises above the value at which they bought it, then they will stop being in losses and will have profits. Something to which these investors, who continue to hold, are precisely pointing. That is, saving in the long term without selling.
Losing Holders Hoard More Bitcoin as Short-Term Traders Flee Bear Market
According to the last report by Glassnode, long-term investors who entered the BTC market in 2021 and 2022 are currently bearing the majority (62%) of unrealized lossesagainst short-term traders.
Such a scenario occurs because short-term investors are looking to make quick profits, so they stay away from the current BTC bear market until its bull run returns. Instead, the holders (long-term savers) keep their funds and some even take advantage of the current prices, close to the lows of 2021 and 2022, to buy more and continue accumulating.
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This is demonstrated by the short-term Mexican trader, Oscar Ortega, who recently said that I wasn’t going to buy bitcoin while it’s crypto winter. That is, the bear market. In contrast, new cryptocurrency investor NasDaily, who bought for the first time this year and is facing unrealized losses of $200,000, decided to buy more last month. The reason is that his investment strategy is long-term based on the speculation that it will rise in price over time.
Glassnode notes that the intensity of uncertainty and stress in the market is observable in the data on the chainwith continued reliance on long-term holders to shoulder the burden.
One of the salient trends of a bear market is the shrinking share of short-term holders (STH), as speculators are driven out of the market. As a result, STHs end up holding fewer coins and long-term holders accumulate and dominate the circulating supply.
Glassnode, blockchain data and analytics provider.
Experts visualize that the bear market will continue for a while longer for bitcoin
Far from seeing BTC’s mountain climb above the $28,000 floor as a positive sign, bearish projections continue. precisely because the demand for the cryptocurrency does not look very strong, in such a way that it could easily fall apart if it does not consolidate.
“Network unrealized losses loom in the twilight zone of late-stage bear markets. However, they are not yet signaling a complete capitulation,” states the Glassnode study. Thus, he suggests that although he sees that the price of BTC seems to be near its bottom, he still projects the bear market for a while longer.
The trader SantinoCrypto communicated that, from his experience predicting prices, he considers that there is still a final capitulation for bitcoin in the USD 20,000 area. Similarly, analyst Alan Ramírez commented last week that there is a high probability that BTC will drop to $22,000.
In an interview with CriptoNoticias, the Venezuelan businessman, Mauricio Di Bartolomeo, co-founder of Ledn, also revealed his bearish projection. Although he anticipates that, if the US Federal Reserve stops raising interest rates in three months, the trend could reverse. From his perspective, from then on, we would be seeing higher prices for bitcoin.