Could Market Bottom be In?

Key Insights:

• Bitcoin supply in loss reaches 10 million coins, marking the fourth-highest level in history.
• Bitcoin trades above $66,795 while its Realized Price remains $54,665, showing potential market pressure.
• $1.13 billion in short positions may liquidate if the token rises $2,000 from current levels.

Bitcoin supply in loss has reached 10 million BTC, raising fresh questions about a possible market bottom. New data shows that half of the circulating supply could soon be underwater as price pressure builds.

Bitcoin Supply in Loss Hits 10M BTC

Bitcoin’s supply in loss recently reached 10 million coins, marking the fourth-highest reading ever. Data shows an additional 70,000 coins are now in loss from purchases made between February 6 and today. 

James Van Straten stated that the circulating supply will reach 20 million BTC next week, which means half of all Bitcoin is currently held at a loss. Market tracking data indicates that periods with high BTC supply in loss have historically coincided with bear market lows.

The analyst noted, “This is the kind of capital destruction we have seen at previous market bottoms.” Past cycles show that deep losses often appeared near price lows. Market participants are now watching on-chain data closely.

Realized Price Bear Market Patterns and Short Liquidations

Meanwhile, Bitcoin Magazine Pro reported that the token has returned to its Realized Price in every past bear market.  The current Realized Price stands at $54,665. The token trades above that level at $66,795.02. The 24-hour trading volume is at $40.93 billion. The price has gained 4.88% in the last 24 hours.

Analysts are comparing current price action with past cycles. They are tracking whether the asset will revisit the Realized Price again.

However, Whale Insider reported that $1.13 billion in crypto short positions face liquidation. This would occur if the asset rises $2,000 from its current price. Large liquidation levels can add to volatility, and a price rise could trigger forced buying from short sellers. That could push prices higher in a short period.

The token’s current trading patterns suggest heightened market activity, with investors watching both realized price levels and short liquidation risks. The coming days may offer a clearer direction for the Bitcoin market.