Nearly 7M Bitcoin Now Sitting At A Loss: Highest Unrealized Pain Since January 2024

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Bitcoin is now holding ground around the $90K level as the market transitions into a new and uncertain phase. Sentiment is sharply divided: some analysts argue that the breakdown below $100K marks the beginning of a new bear market, while others believe Bitcoin is setting the stage to break its traditional four-year cycle and rally harder than ever in the months ahead. This tension reflects a market struggling to price in fear, macro pressure, and structural shifts in liquidity. Related Reading XRP Supply In Profit Falls to 58.5% – Lowest Since 2024 Despite Higher Price 22 hours ago According to new data shared by top analyst Darkfost, more than 6.96 million BTC accumulated by investors are now sitting at an unrealized loss. This marks the highest level of unrealized loss since January 2024, even though the current correction has not yet surpassed the steepest drawdown seen earlier in the cycle. The implication is clear: a massive portion of supply was accumulated near Bitcoin’s previous all-time highs, making recent selling pressure especially emotional and reactive. Bitcoin Supply in Profit/Loss | Source: Darkfost Despite this, Bitcoin continues to defend the $90K region — a sign that demand is absorbing extreme stress. Whether this marks the early stage of a bear market or the final flush before a major rebound remains the central question dominating the market. Rising Unrealized Losses Signal a Classic “Change of Hands” Phase Darkfost explains that the spike in unrealized losses reflects a simple but critical reality: a massive amount of Bitcoin was accumulated near the previous all-time highs, meaning many recent buyers are now underwater. This is especially true for short-term holders (STHs), who tend to react quickly to volatility. Their elevated cost basis — clustered near cycle tops — makes them more vulnerable to panic selling, which is exactly what the market is witnessing as BTC hovers near $90K. This phenomenon helps explain the intense selling pressure seen in recent days. STHs, driven by fear and deteriorating sentiment, have been sending coins to exchanges at a loss, amplifying short-term volatility. But Darkfost notes an important historical pattern: during bullish market structures, rising unrealized losses have consistently produced strong buying opportunities. Related Reading Galaxy Digital Dumps 2,800 BTC as Bitcoin Crashes Below $90K 1 day ago These phases often mark the transition where weak hands capitulate and long-term, conviction-driven buyers absorb supply. This is the defining moment of the “change of hands” narrative — where Bitcoin shifts from emotionally driven participants to strategic holders who shape the next major move. BTC Price Analysis: Testing Major Support as Momentum Weakens Bitcoin continues to trade under heavy pressure, holding just above the critical $90K region after a sharp multi-week decline. The 3-day chart shows a decisive break below the 50-day and 100-day moving averages, signaling a loss of short- and medium-term momentum. Price is now sitting directly on the 200-day moving average — a level that historically acts as the final line of defense during deep corrections in bullish cycles. BTC testing local demand | Source: BTCUSDT chart on TradingView The recent candles show long lower wicks, suggesting buyers are attempting to defend this zone, but the rebound strength remains limited. Volume has increased on downside moves, confirming that sellers are driving the current structure. This pattern resembles previous late-cycle shakeouts, where high volatility clusters near major moving averages precede a trend reset or further breakdown. Related Reading Ethereum Approaches Historical Accumulation Level – Just 8% Away From LTH Cost Basis 1 day ago Structurally, BTC is forming lower highs and lower lows on this timeframe — a clear sign of short-term bearish conditions. A sustained break below the 200-day MA could accelerate downside momentum and expose lower liquidity pockets around $85K–$88K. However, if bulls manage to stabilize the price above $90K and reclaim the 100-day MA in the coming sessions, it could signal seller exhaustion. Right now, Bitcoin sits at a pivotal crossroads, with market sentiment fragile and direction dependent on how this support zone holds. Featured image from ChatGPT, chart from TradingView.com