Bitcoin Bottom Formation Signaled as Holder Losses Reach 43%

Signs of market bottom formation are emerging as Bitcoin holders continue to experience significant losses. Data from Glassnode reveals that long-term investors have incurred realized losses amounting to 43% of the total value registered on the network.

The daily trading volume of Bitcoin ETFs remains relatively stable, ranging between $650 million and $950 million over the past few months. However, the put/call ratio in the options market has dropped to its lowest level this year at 0.56.

A key indicator of institutional undervaluation is that the Bitcoin price has consistently remained below its actual market average and the cost basis of short-term investors for an extended period.

The recent geopolitical shock caused by the breakdown of the US-Iran memorandum of understanding led to a 7.9% increase in WTI crude oil prices, triggering a reduction in cryptocurrency's weekly advance from 9.4% to approximately 5%. This aligns with the widespread retreat of traditional stock indices such as S&P 500 and Euro Stoxx.

Technical analysis suggests that Bitcoin's price has found fundamental support at around $60,000, acting as a stable floor structure. A sustained move above the mid-range of $65,000 would be necessary to break resistance and potentially target previous highs near $70,000.