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Glassnode: Bitcoins have entered an "over-stop-loss" phase; if history repeats itself, prices could drop to $44,000
Svmuu News: On-chain data firm Glassnode notes that Bitcoin is entering a phase of "excess loss realization." If historical trends hold, the price may remain under pressure in the coming months, with a potential downside target around $44,000.Data shows that on Monday, Bitcoin the 90-day moving average of the “realized P/L ratio” fell below 1, indicating that the market as a whole is in a state of loss-driven selling. A reading below 1 typically reflects panic selling, margin pressure, or a decline in macro risk appetite.Historically, when this indicator falls below 1, it is often accompanied by a sustained loss-realization cycle lasting at least six months; if it recovers above 1, it typically signals an easing of selling pressure. Past bear market experience shows that loss-driven selling typically accelerates in the middle of the cycle and is accompanied by further declines.During the 2022 bear market, Bitcoin’s price fell by approximately 25% within six months after the indicator fell below 1; in a similar phase in 2018, it plummeted by over 50% within five months.If history repeats itself, the current correction may continue for about five months, completing the transition to a “full-scale excessive loss realization phase.” If market deleveraging and loss-realization pressures persist, Bitcoin’s price may remain under pressure in the coming months until the cyclical clearance is complete.
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