Despite the recent sell-off pushing Bitcoin prices below $60,000, a new analysis by Glassnode indicates that the market remains very strong. Data from the on-chain analysis platform shows that investors’ overall profitability remains robust, with an average coin holding a profit multiple of 2x, a level often seen during the enthusiastic and excited stages of a bull market.
Glassnode’s analysis reveals that the average profit per coin stands at an unrealized gain of $41,300, with a cost basis of about $19,400. Meanwhile, the average loss-bearing coin holds an unrealized loss of $5,300, with a cost basis of approximately $66,100, primarily held by short-term holders.
This divergence highlights potential sell-off pressure points as investors weigh realizing gains against mitigating losses. Notably, the magnitude of book gains is 8.2 times that of book losses. Only 18% of trading days have exceeded this ratio, all of which were during bull market periods.
Moreover, Glassnode points out that despite prices still being in the enthusiastic bull market range, the market is currently characterized by indifference and boredom, even though Bitcoin is only 20% below its historical high from March. The average cost basis for each active investor remains around $50,000, a critical level needed to sustain the macro bull market.
The analysis identifies three key pricing levels that could influence investor behavior. A breakout of the $58,000 to $60,000 range would put many short-term holders into a loss. Price movements between $60,000 and $64,000 would continue the current sideways trajectory, while a decisive breakout above $64,000 would return a large number of STH coins to profitability and could boost investor sentiment.
At the time of writing, Bitcoin has fallen over 4% in the past 24 hours, briefly touching $59,662 before closing at $60,200.
