Bitcoin Price Drops Below $70,000 Amid Extreme Fear and Losses

Bitcoin's price has been fluctuating in recent days, causing concerns among investors and analysts. A closer look at the data suggests that Bitcoin is indeed entering the last stages of a bear market, characterized by extreme fear and losses. According to CryptoQuant, the Net Unrealized Profit/Loss (NUPL) has dropped below 0.25, indicating that roughly 40% of Bitcoin's circulating supply is held at a loss.

The Fear and Greed Index has also reached an 'Extreme Fear' level of 15, reflecting pain and uncertainty among investors. However, analysts point out that this could be a sign of a potential rebound, as a NUPL recovery above 0.25 would mark a transition into the optimism zone. Historically, this has been accompanied by strengthening price momentum.

Another indicator, the entity-adjusted realized profit, has dropped from $3 billion per day in July to below $0.1 billion today, offering further evidence of demand exhaustion. This is a characteristic of a bear market transitioning into its later stages, where the pool of profitable sellers has been depleted and on-chain liquidity thins.

While some analysts suggest that Bitcoin's price may have bottomed at $60,000, more consistent confirmation signals are needed to confirm a true bottom. For now, the $70,000 level remains key, with support below at $65,000-$60,000 and resistance above at $72,000.