Bitcoin has dropped below $60,000 for the first time in two months. After a period of excitement, the crypto market is starting to calm down.
Fading Euphoria
Glassnode, a data analysis company, reports that the hype surrounding Bitcoin has cooled off. Investors are now more inclined to sell than buy.
Selling Pressure
After reaching a record high of $73,737 in March, Bitcoin has lost over 18% as investors cash out. More addresses are holding Bitcoin at a loss, indicating increased selling pressure.
Market Correction
Glassnode’s Net Unrealized Profit & Loss (NUPL) metric shows that Bitcoin has been in a state of euphoria for the past seven months. However, this has cooled off due to recent corrections.
Trader Sentiment
Traders are now selling across the board, as indicated by a rise in net outflows. Short-term holders have been losing money for the past three months.
Implications for Bitcoin
While the “fear” rating may concern investors, analysts view a pullback as healthy after a significant price increase. Long-term holders remain optimistic.
Key Price Level
Analyst Ali Martinez suggests that $59,800 is a crucial level to watch. Historically, Bitcoin has tended to rebound above the price at which short-term holders bought.
