According to the latest report Bitfinex Alphai Short-term Bitcoin holders are facing the highest level of losses unrealized since the 2022 bear market.
This situation has intensified concerns about a potential fire saleputting further downward pressure on prices.
The report Short-Term Holder MVRV (Market Value to Realized Value), which measures the current market value of BTC relative to the price it was last moved to on the blockchain, is currently less than one. This suggests that if short-term holders were to sell now, would suffer losses, potentially leading to increased selling pressure in a declining market.
Il Bitcoin price has dropped 33% from its peak of around $73,700marking the steepest decline in this cycle. The Mayer Multiple, which compares the current price of Bitcoin with its 200-day moving average, fell to 0.88. This is the lowest level since FTX crashed in November 2022.
The Mayer Multiple is a key indicator to evaluate Bitcoin price trends compared to its historical average. A low Mayer Multiple signals that Bitcoin is trading significantly below its typical historical value, offering insights into potential market buy or sell signals.
Currently, the Short-Term Holder Realized Price (STH Cost-Basis) is $64,860, which reflects the average purchase price for those who have held their coins for 155 days or less. The recent spot price of Bitcoin has been close to one standard deviation below this levela situation that occurred on only 7.1% of trading days.
This significant deviation underlines the severity of the recent market downturn and highlights the stress experienced by new market participants. Assessing this sentiment is essential to understanding current market dynamics.
Source: Cryptodnes
