Bitcoin Market Indicator Continues to Deteriorate
According to the latest data released by glassnode, Bitcoin's realized profit and loss ratio (90-day simple moving average) has shown a continuous decline, currently dropping to around 1.5. This value indicates that the market is gradually losing liquidity support, and investor sentiment is becoming increasingly cautious.
Historical Signals of Falling Below 1.0
Historical data suggests that when this ratio drops below 1, it often signals a deep market correction. At this stage, the average holding cost of investors is below the current price, leading to significant paper losses, which may trigger 'capitulation-style' selling.
The Market May Be Approaching a Critical Turning Point
Currently, the Bitcoin market is at a delicate balance. If this indicator continues to decline below 1, it could lead to broader price volatility. Investors should closely monitor market movements and implement appropriate risk control measures.