Bitcoin Closer to Bottoming Phase Than Early Bear Stage, Report Says

A new report from Glassnode says Bitcoin could potentially be closer to a bottoming range than the early phase of the bear market.

Here is the chart shared by Glassnode that shows the trend in the 7-day moving average (MA) value of the metric over the last several years:

As displayed in the above graph, the Bitcoin Total Supply in Loss approached a value of zero as the cryptocurrency’s price hit a new all-time high (ATH) in October. The market downturn that has followed since then, however, has put a large chunk of the supply into loss, causing a sharp surge in the indicator.

From the chart, it’s visible that not only is the current level of the metric similar to past bear markets, its structure in fact resembles that of their latter stages, rather than early phases.

So far, the 7-day MA Total Supply in Loss hasn’t reached the same highs as during previous cyclical bottoms, but it has certainly come close following the most recent jump in the metric. “In structural terms, the market appears closer to a potential bottoming range than to the initial onset of contraction, even as volatility and fragility persist,” noted Glassnode.

Bitcoin recovered above $69,000 on Wednesday, but its price has seen a small pullback since then as it’s now trading around $67,300.