According to the expert, these investors presently have an average unrealized loss of 26.3%, which is a comparatively big amount. While the metric is positioned at 26.3%, the most important level to watch out for is the 25% mark. Typically, periods where the average unrealized losses exceed 25% are most often linked to an advanced bear market phase.
During periods of highly elevated short-term holder profits, usually around 20% in this cycle, the risk of a trend reversal increases significantly. In the meantime, the expert considers the trend to be largely bearish, with short-term holders holding historically high levels of losses. Nonetheless, these are also classified as periods where building exposure is a logical move.
Pressure Building On The BTC Spot ETFsCurrently, the trend is triggering questions in the market about whether the investors are losing or whether it will lead to supply exhaustion. This is due to the fact that 25 days of unrealized losses flip positioning psychologically fast.
