A 20% BTC Correction on the Table: Glassnode

Glassnode warns that Bitcoin's struggle to reclaim the $113,000 cost basis could trigger a deeper correction towards $88,000. This month alone, long-term holders have sold approximately 104,000 BTC, marking the highest selling wave since July, while short-term holders are now exiting at a loss. Despite eased volatility since the October liquidation, market confidence remains fragile as Bitcoin attempts to reclaim the $113,000 level, which is crucial for a bull market. The Short-Term Holder Net Unrealized Profit/Loss (STH-NUPL) reflects mild losses, indicating a deterioration in investor confidence. The report suggests a transition into a consolidation phase for Bitcoin, though recovery is contingent on renewed investor conviction. Until long-term holders cease selling and begin accumulating again, price recovery is likely to be restricted.

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