Bitcoin Hovers Below $85K as Short-Term Holders Face Rising Unrealized Losses

Bitcoin continues to trade sideways below the $85,000 mark as of April 18, with on-chain data from Glassnode highlighting growing unrealized losses among short-term holders. These investors, who acquired BTC at higher prices during recent peaks, are now deeply underwater due to ongoing price corrections. Unrealized losses, calculated by comparing current market prices to the average acquisition cost, have significantly increased across the market.

While long-term holders still remain broadly in profit, they too are approaching a critical threshold. Continued downward pressure on BTC's price could potentially erode their gains, especially if bearish momentum intensifies. Historically, similar patterns of rising unrealized losses have signaled the early stages of bear markets, although the current corrections are not as steep as those seen in previous cycles.

Glassnode data shows that repeated dips have intensified unrealized losses per percent drawdown, raising concerns about the sustainability of the recent bull run. Despite the bearish indicators, top Bitcoin whales and institutional investors like BlackRock continue to accumulate BTC, suggesting confidence in its long-term potential. Their ongoing accumulation offers some support against further price decline, as a growing number of buyers transition into long-term holders.

This evolving on-chain landscape underscores a pivotal moment for Bitcoin. While not yet confirming a full-blown bear market, the metrics suggest caution among retail and institutional players alike. The market's ability to hold above key levels and shake off mounting unrealized losses will determine its near-term direction. As Bitcoin consolidates near $85K, all eyes remain on whether long-term holders can anchor price stability or if another wave of selling pressure will trigger deeper corrections.