by Lydia Ludmila 
Today’s Bitcoin price analysis is bearish, as selling pressure has returned at the $35,000 level in the last few hours. As a result, BTC/USD has likely retraced sufficiently and is now poised to drop further.
Bitcoin (BTC) traders who are currently losing money may be driving the next BTC sell-off, Reports leading crypto analytics business
According to the newest Glassnode data, Underwater traders are under the strongest pressure to liquidate their assets, potentially igniting a bear market.
The firm says, as the current decline deepens, the likelihood of a more persistent bear market increases, as recency bias and the size of investor losses weigh on mood. The longer investors are underwater on their positions and their unrealized losses grow, the more likely those held coins will be spent and sold.
According to the market intelligence organization, these underwater investors account for a significant fraction of BTC holders and have the most incentive to sell their assets. This action has the potential to reduce BTC price.
Traders Could Ignite Bitcoin Sell-Off
Glassnode data explains that the financial expense and psychological suffering of keeping an underwater investment is a likely factor for this spending behavior.
These users are statistically the most likely to become yet another source of sell-side pressure if the market fails to create a lasting rally, especially if price trades below their cost basis.
Short-term holders (STHs) of Bitcoin, according to Glassnode, make up a considerable part of both BTC holders and underwater investors. The Bitcoin Short-Term Holder Net Unrealized Profit and Loss (NUPL) chart is used as proof by the corporation. STHs have been underwater in aggregate since early December, according to the crypto intelligence business, and contribute for around 18% of BTC’s overall market worth.
“With a total of 4.70M BTC currently underwater, and 54.5% of it held by STHs who are statistically more likely to spend it, the bulls certainly have their work cut out for them.”
Finally, Glassnode predicts that Bitcoin bulls will face a rocky road ahead.
