Bitcoin Nears Bear-Market Bottom Amid Long-Term Holder Selling Pressure

Bitcoin's long-term holders have been driving losses as they sell their holdings, and this could be a sign that the cryptocurrency is nearing a bottom. According to Glassnode, bitcoin has traded below its True Market Mean of $76,600 and short-term holder cost basis of $72,200 since early February. This period of time is significant because it suggests that the market may have entered the final stage of forming a bear-market bottom.

However, Glassnode warns that bitcoin could still slide further to around $53,000 before confirming a bottom. The market has indeed entered a 'deep value zone', but there is no clear signal yet. Long-term holders were identified as the main sellers in this downturn, with their share of total realised losses jumping to 43 percent from 15 percent in early February.

The long-term holder adjusted realised loss indicator also rose to about $280 million a day, the highest since December 2022. This is seen as the second large capitulation wave in the current bear market. Glassnode notes that selling pressure has not yet eased, unlike the previous capitulation phase, suggesting the market has not reached the stage of 'full seller exhaustion'.