Bitcoin STH Unrealized Losses Hit 15%: Is This Where The Bleeding Stops?

While the long-term impact of the latest US military strikes on the cryptocurrency market remains unknown, the Bitcoin price seems to be gearing up for an upward move in the short term. Interestingly, the latest on-chain data suggests that the cryptocurrency market leader could potentially reach a correction low.

As Darkfost explained in their Quicktake post, this figure was arrived at based on the percentage deviation from the short-term holder cost basis. “Using this approach makes it possible to identify periods when the most reactive and sensitive investors in the market are under stress,” the on-chain analyst said.

However, the crypto analyst noted that this signal could be false, especially if the Bitcoin price is at the start of an extended bear market. A deep or prolonged bear market could cause the STH’s unrealized losses to stay above 15% for longer periods or open the door to persistent distribution.

As of this writing, the price of BTC stands at around $91,160, reflecting a more than 1% jump in the past 24 hours. According to data from CoinGecko, the flagship cryptocurrency has increased by nearly 4% in the past seven days.