Research agency Glassnode believes that market indicators say that in the current market, most traders sell bitcoins at a loss.
Analyst firm Glassnode has reported that the current Bitcoin bear trend is the worst ever recorded, with most holders selling BTC at a loss. In a report titled “Bear of Historic Scales”, the first and most obvious sign of a bear market, Glassnode analysts called the fall in the spot price of bitcoin below the 200-day moving average (MM) and an even more extreme scenario of the 200-week moving average (MA).
Glassnode notes that bitcoin falling below half of the 200-day moving average is an extremely rare event that has not been seen since 2015. MM takes into account price changes above and below the 200-day moving average to show overbought or oversold conditions.
Confirmation of the seriousness of the current market conditions was the drop in the spot price below the sale price, forcing traders to increasingly sell bitcoins at a loss. Glassnode analysts say this cascade effect is “typical of bear markets and market capitulations.”
The report notes that it is rare for spot prices to trade below the strike price, the third time in the past six years and the fifth time since Bitcoin was launched in 2009.
CNBC host Jim Cramer believes that in the coming months, bitcoin can recover most of the losses, but do not expect new price records.
