Bitcoin Market Enters Excess Loss-Realization Phase as Price Drops Below $63K

The Bitcoin market has been experiencing a period of high volatility in recent days, with the price dropping below $63,000 on Tuesday.

According to data from CryptoQuant and Glassnode, short-term holders have been selling their coins at a loss, contributing to the decline in price. The 7-day estimated moving average (EMA) of Bitcoin's short-term holder net realized losses had cooled to $500 million per day, down from a high of $1.24 billion per day on February 6.

Despite this, analysts suggest that this could be a sign of a potential bottom forming. The Relative Strength Index (RSI) has reached its 'most oversold' score of 25.71, which is lower than the previous record low level back after the 3AC/Luna crash.