Approximately 6.7 million Bitcoin currently trades below its purchase price, marking the highest loss-bearing supply observed during this market cycle.
Bitcoin News
Bitcoin (BTC) remains confined within a fragile price range as overhead supply between $93,000 and $120,000 continues to block recovery attempts, according to analytics firm Glassnode. The cryptocurrency tested resistance near $93,000 before declining toward $85,600, highlighting persistent sell pressure from investors who bought at higher levels.
Approximately 6.7 million Bitcoin currently trades below its purchase price, marking the highest loss-bearing supply observed during this market cycle. The volume has remained between 6 million and 7 million tokens since mid-November, mirroring early transitional phases from prior cycles when mounting investor frustration preceded deeper declines.
Long-term holders control 10.2% of the circulating supply currently underwater while short-term holders account for 13.5%. Loss-bearing supply accumulated by recent buyers gradually matures into the long-term cohort as time-based pressure builds, potentially triggering capitulation at lower price levels.
The True Market Mean near $81,300 has provided support despite sustained selling activity. Patient buyer demand at this threshold prevents a deeper breakdown, though spot accumulation remains tactical rather than coordinated across major venues like Coinbase and Binance.
Supply attributed to investors who exit at a loss has climbed to roughly 360,000 Bitcoin. Any decline below the $81,300 support level risks expanding this cohort further, adding incremental sell-side pressure to an already strained market structure.
Futures markets show declining open interest from cycle highs alongside relatively neutral funding rates. The data indicates ongoing position reduction rather than excessive leverage deployment, suggesting traders prioritize balance sheet management over directional conviction in current conditions.
Options markets reinforce the range-bound regime as front-end implied volatility compressed following Federal Reserve decisions. Downside puts continue to trade at a premium to calls, though that premium remains stable rather than widening, indicating maintained protection without defensive escalation.
Large December expiries concentrate risk on specific dates, with meaningful crypto open interest rolling off Dec. 19, followed by the year's largest expiry on Dec. 26. This positioning leaves dealers long gamma on both sides, mechanically reinforcing range-bound price action until hedges roll off after the final expiry passes.
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