Bitcoin Stagnation: Glassnode Highlights Lack of Catalyst

Bitcoin remains within the $60,000 to $70,000 range as spot demand shows early absorption.

Bitcoin remains within the $60,000 to $70,000 range as spot demand shows early absorption and derivative positions are being reassessed, according to the weekly report from Glassnode.

“Volatility is decreasing and positions are balancing, but without a clear catalyst, the market lacks the confidence needed for a sustainable breakthrough,” analysts stated.

One of the most persistent factors restraining growth is the significant volume of supply acquired at prices above $80,000, which is currently held at an unrealized loss.

This group of investors, having endured more than six months of a bear market, faces two options: selling on any recovery to minimize losses or psychological capitulation as the downturn continues.

A large cluster of wallets has now formed, having purchased bitcoin at prices ranging from $80,000 to $126,000.

“To address this issue, it will likely require either a significant price drop to attract new buyers or a prolonged period during which these coins transfer to more committed holders,” experts noted.

The indicator of the total number of coins in loss shows structural similarity to the conditions of the second quarter of 2022. The smoothed 30-day metric has exceeded the level of 8.4 million BTC.

Simultaneously, realized losses of long-term holders are increasing, with the daily value rising to $200 million.

“The spot markets show early signs of stabilization: the 30-day moving average of the spot volume delta on Coinbase has slightly increased to the positive side in recent data,” Glassnode emphasized.

Nevertheless, the strength of the bears is reinforced by the increased interest in short positions in the derivatives market. The company believes that further buyer pressure will be needed for a more sustainable recovery.

Back in late 2024, the gap between the spot and realized price of the leading cryptocurrency narrowed from 120% to the current 21%.