With the broader crypto market on edge, Bitcoin [BTC] has struggled to maintain an upward momentum. In fact, Bitcoin has hovered between $89k and $94k for nearly a week, reflecting a market at a decision point.
Amid this market slowdown, unrealized losses have soared across the market.
Bitcoin’s unrealized loss hit $85B
With BTC and the broader crypto market holding below historical peaks for a prolonged period, losses have jumped significantly.
According to Glassnode, unrealized losses across the crypto ecosystem have surged to $350 billion.
This sharp uptick suggests that most crypto assets are facing heavy selling pressure. Among them, Bitcoin stands out, leading with $85 billion in unrealized losses.
This implies that most short-term holders and some long-term holders are now sitting on losses. Usually, increased unrealized losses pose a risk of market collapse if panic hits, leading to sell-offs.
Whale takes $5M loss!
As unrealized losses mount, some investors, particularly whales, have begun closing their positions.
Bitcoin has reflected this shift with a noticeable spike in exchange activity. The Fund Flow Ratio has climbed steadily from 0.06 to 0.106, signaling a rise in BTC deposits into exchanges.
According to Lookonchain, a whale deposited 2,000 BTC, worth $180.33 million, into Binance.
On the 4th and 5th of December, this whale address received 5,000 BTC from Matrixport, valued at $463.55 million for $92,710.
After selling, Arkham data shows the address still holds 3,000 BTC worth $277.61 million. As a result, the whale has incurred roughly $5 million in losses from the deposit.
With the whale choosing to realize losses, it shows a loss of confidence in the market after a week, as they fear further losses.
BTC at crossroads, which way?
Bitcoin’s struggles persisted as investors, especially whales, turned to sell even at a loss. However, demand has shown early signs of recovery.
In fact, Exchange Netflows have remained negative for five consecutive days and turned positive only once in the past seven days.
At press time, Netflow stood at -2.2k, showing that withdrawals outweighed deposits, a clear signal of accumulation.
With demand recovering, BTC crossed above the short‐term EMA20 near $91,769, marking a shift toward bullish short‐term momentum.
However, the broader trend remains bearish. BTC is still trading below the 50, 100, and 200 EMAs. Adding to this, the Directional Movement Index fell from 20 to 17, underscoring strong bearish momentum in the longer term.
Therefore, if the short-term momentum shift holds, giving buyers a pathway, Bitcoin could reclaim $94k and target EMA50 at $96476.
Conversely, if the attempt fails, it will drop below EMA20 and breach $90k, support once again.
Final Thoughts
- A Bitcoin whale offloaded 2000 BTC, worth $180.3 million, taking a $5 million loss.
- Bitcoin unrealized losses have jumped to $85 billion, while the crypto market has recorded $350 billion in unrealized losses.
