Despite recent sell-offs pushing the price of Bitcoin below $60,000, a new analysis by Glassnode suggests that the market remains strong.
According to data from the on-chain analytics platform, investors’ overall profitability is still robust, with an average coin holding a profit multiple of 2, a level often seen during the enthusiasm and excitement stages of a bull market.
Glassnode’s analysis reveals that the average profit of a coin is an unrealized gain of $41,300, with a cost basis of around $19,400. Meanwhile, the average loss 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 selling pressure as investors weigh realizing gains against mitigating losses. It’s worth noting that the magnitude of paper gains is 8.2 times that of paper losses. Only 18% of trading days have exceeded this ratio, and all of them occurred during bull markets.
Furthermore, Glassnode points out that despite the price still being within the enthusiastic bull market range, the current market sentiment is characterized by indifference and boredom, even though Bitcoin is only down 20% from its historical high in March. The average cost basis for each active investor remains around $50,000, which is a critical level for sustaining a macro bull market.
The analysis identifies three key pricing levels that could impact investor behavior. Breaking the range between $58,000 and $60,000 would result in many short-term holders facing losses. Price movements between $60,000 and $64,000 would continue the current consolidation pattern, while a decisive breakthrough above $64,000 would lead to a significant number of coins being profitable again, potentially boosting investor sentiment.
At the time of writing, Bitcoin has fallen over 4% in the past 24 hours, briefly touching $59,662 before ultimately closing at $60,200.