The Bitcoin market appears to be riddled with an increasing amount of sell-side pressure, as its recent price action reveals bears\u2019 dominance. Interestingly, another on-chain evaluation suggests that the current market movement may be a direct effect of rising panic-induced sales.\u00a0<\/p>\n
In a Quicktake post on the CryptoQuant platform, GugaOnChain shared<\/a> that the Bitcoin market has been in a capitulation phase in recent days. This on-chain observation revolves around the Bitcoin Realized Profit and Loss ($) metric. <\/p>\n For context, this metric tracks the actual profits (in US dollars) and losses investors realize\u2014or lock in\u2014whenever they offload their Bitcoin holdings to exchanges.\u00a0<\/p>\n GugaOnChain highlighted that about $1.705 billion worth of BTC has been realized in losses by market participants. On the other hand, a relatively smaller amount, totaling approximately $605 million, was reportedly realized in gains.<\/p>\n Source: CryptoOnchainThis disproportionate distribution in losses, as against the profits acquired, puts the Loss\/Gain ratio at a 2.82 reading. This means that, for every dollar made in profit, almost 3 dollars are lost.\u00a0<\/p>\n Looking at the bigger picture, the analyst pointed out that 74% of the total realized volume leans towards the red side of the market, leaving a mere 26% of the Bitcoin market in profits. When realized losses surge rapidly to overcome gains, it is often interpreted as a sign of capitulation<\/a>. <\/p>\n Historically, extreme capitulation events tend to set the pace either for price recovery or even deeper downside movement. These two possibilities, however, remain dependent on the integrity of available inflection points.\u00a0<\/p>\n Although the market odds currently seem stacked against the bulls, as the price takes on a bearish structure, the analyst also identified a few important zones<\/a> that may determine Bitcoin\u2019s next direction. GugaOnChain explained that, in the scenario where the bulls continue to bleed, the next price level presenting an opportunity of redemption lies around $71,450. <\/p>\n This specific price level is critical, as it represents the realized price for investors who have acquired Bitcoin for about 12\u201318 months.\u00a0<\/p>\n Citing a more extreme scenario, the online pundit revealed that the next key support sits at $58,940. This zone is important as it is the realized price for investors whose coins are within the 18-month to 2-year age range.\u00a0\u00a0<\/p>\nBulls Must Defend These Price Levels Or Risk Deeper Corrections<\/h2>\n