Bitcoin prices have recently shown a notable correction, yet on-chain data suggests market risks remain high.
Unrealized Losses Stay Low
According to data from the on-chain analysis platform CryptoQuant, only 24% of the circulating Bitcoin supply is currently in the unrealized loss zone. Historically, this level corresponds to an early stage of corrections, indicating that the vast majority of investors have not yet realized their losses. This lack of widespread sell-off reflects the absence of panic among holders.
Clear Signals Needed for New Bitcoin Purchases
Market expert Crazzyblock has warned that the current supply structure and low loss ratios create a high-risk environment. The expert emphasized that hasty decisions in this period could yield ineffective results for short-term trading strategies.
Bitcoin Market Awaits Further Investor Behavior
At this juncture, the most rational move for investors may be to await clearer signals from market structure and investor behavior. Experts assert that monitoring price movements and volume dynamics for a while longer is crucial to avoid significant losses when acquiring new positions.
The persistent high unrealized losses and uncertainty in the market require patience from investors. Waiting for clearer signals may lead to more favorable entry opportunities.
