Bitcoin might be nearing a stage of seller exhaustion. After hitting its lowest point near $60,000 on February 5, the cryptocurrency has been in consolidation for over two months, steadily climbing back toward $70,000 amid global macroeconomic uncertainties, including heightened oil prices due to tensions in the Middle East.
Insights from CheckonChain indicate a reduction in selling pressure. Current realized losses stand at about $400 million daily—elevated when compared to previous years but on a downward trend recently. These losses had surged to as much as $2 billion on November 21 and February 5, reaching unprecedented levels not observed in several years, even surpassing those during the 2022 bear market, according to CheckonChain.
“The spot markets are transitioning from aggressive selling to a net buying pressure, with both realized profits and losses decreasing,” noted CheckonChain.
Supporting this observation, Glassnode data shows that on a seven-day moving average, realized profits amount to approximately $300 million per day, nearing twelve-month lows. This implies that investors who purchased bitcoin at around $60,000 are now marginally profitable and starting to realize some gains.
Additionally, the realized profit-to-loss ratio has climbed to 1.4, marking its highest since January as per Glassnode data. This metric measures the value of coins moved at a profit against those moved at a loss, indicating that profits now exceed losses.
These metrics collectively suggest diminishing selling pressure, hinting at bitcoin entering a phase where seller exhaustion becomes more probable.