February 25 News: Bitcoin has fallen approximately 28% this month. Although recent prices are close to previous highs, blockchain analytics firm Glassnode warns that there may still be downward pressure over the next 5 to 6 months.
Glassnode’s report shows that the 90-day moving average of the Realized Profit and Loss Ratio (RPR) for Bitcoin has fallen below 1, an indicator that typically reflects selling pressure and investor sentiment in the market. Historical data indicates that when the RPR drops below 1, a bear market often lasts at least six months. The company notes that when the RPR rises back above 1, it usually signals a easing of selling pressure.
The report compares the current situation with bear markets in 2022 and 2018. In the 2022 bear market, Bitcoin’s price declined about 25% within six months after the RPR fell below 1; in the similar market conditions of 2018, Bitcoin dropped over 50% within five months. Glassnode’s analysis suggests that if historical patterns repeat, Bitcoin could continue its downward trend for several more months.
The realized profit and loss ratio measures the proportion of actual gains versus losses on the Bitcoin network, providing an intuitive view of selling pressure from long-term holders and overall market sentiment. Analysts advise investors to closely monitor RPR changes and key support levels to assess potential risks and rebound opportunities.
Overall, while Bitcoin shows a technical rebound in the short term, selling pressure has not significantly eased. Long-term holders and new investors should remain cautious to prepare for the possibility of continued decline.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Woo on BTC Price: 'Bull Trap Incoming' - U.Today
Willy Woo warns investors against short-term optimism in Bitcoin's price, indicating a potential bear trap despite possible relief rallies. He emphasizes that the market remains in a bearish phase and that the current conditions do not signify a market bottom.
UToday34m ago
Bitcoin Dip May Continue as Retail Buys Under $70K, Santiment Says
Bitcoin has shown renewed volatility as buyers and sellers clash at key levels. Retail participants have been loading up after the price dipped below $70,000, while larger holders have been trimming positions. Over a period spanning Feb. 23 to Mar. 3, Bitcoin traded roughly between $62,900 and $69,6
CryptoBreaking44m ago
ETH/BTC Ratio Locks Into Tight Range – Why the 0.03 Level Is the Key to Ethereum’s Next Big Move
The ETH/BTC ratio indicates ongoing hype in altcoin season and the continuing march of Bitcoin to new heights. Ethereum and Bitcoin are moving closely together than they have before (with little distance between them) as indicated by the ETH/BTC ratio reaching some of the tightest historical
BlockChainReporter1h ago
