Bitcoin’s Rally Faces a Big Threat: Short-Term Buyers Are Losing Big!

by

<a href="https://inrusdinr.in/btc-usd/">Bitcoin</a>’s Rally Has a Problem: Short-Term Buyers Are Still Bleeding Cash

Key Takeaways 

  • Bitcoin’s rebound above $90K is happening while recent buyers are realizing unusually large losses.
  • Shrinking short-term demand leaves the $81K support level vulnerable to another retest.
  • Glassnode says recovery signals would only strengthen once BTC reclaims the $100K–$105K range. 

Recent data from Glassnode indicates that new investors are experiencing losses at a remarkably high rate. While long-term Bitcoin holders don’t seem concerned, short-term traders—who usually drive price swings—are currently operating at a loss.

A Market Bounce With Weak Underpinnings

Bitcoin’s price recently jumped, happening shortly after it briefly fell to around $80,000. Usually, a bounce back like this suggests that investors are eager to buy when the price drops. However, data from the blockchain suggests a different situation this time.

A recent Glassnode report shows a sharp drop in the ratio of short-term profits to losses. This ratio helps determine if people who recently bought Bitcoin are selling for a profit or a loss. Currently, it’s at 0.07, indicating that the average short-term seller is experiencing a substantial loss.

If this ratio remains consistently low, it usually means liquidity decreases instead of increases. Glassnode warns that a market increase fueled by traders operating at a loss is fundamentally fragile.

The Critical Threshold to Watch

Experts say Bitcoin needs to stay above $81,000 to avoid further declines. This price represents the average purchase price for Bitcoin bought during the current market period.

If the price falls significantly below this level, it would suggest that demand, particularly from new investors, is drying up. Glassnode notes this situation is similar to early 2022, when a prolonged decrease in short-term demand led to a larger price decline for Bitcoin.

What Would Restore Confidence?

The report suggests Bitcoin could regain its upward trend. If it climbs back to between $100,000 and $105,000, many investors who recently sold would likely see a profit. This often leads to more trading activity, encourages people to buy again, and makes investors more willing to take risks.

For now, Bitcoin rising back above $90,000 seems less like the beginning of a sustained price increase and more like a temporary pause as the market runs out of steam.

This article is for informational purposes only and shouldn’t be considered financial, investment, or trading advice. Coindoo.com doesn’t support or suggest any particular investment or cryptocurrency. Always do your own research and talk to a qualified financial advisor before investing.

Read More

2025-11-28 08:53