Bitcoin (BTC) has once again approached the $60,000 mark after the sharp drop it experienced in February. While a further decline is expected in the coming days, the latest assessment comes from Glassnode.
According to Glassnode, Bitcoin’s realized profit/loss ratio (90-day moving average) has fallen below 1. This suggests the decline could continue for another five to six months.
Glassnode, in a post from account X, stated that according to historical data, drops in the Realized Profit/Loss Ratio below 1 have occurred before a decline period of at least six months.
This means that Bitcoin could experience another six months of decline after its historical profit/loss ratio fell below 1.
On the other hand, a return above 1 generally indicates a decrease in selling pressure.
The 2022 and 2018 bear markets were cited as examples of this situation. During the 2022 bear market, BTC lost 25% of its value six months after its profit/loss ratio fell below 1. Similarly, under similar conditions in 2018, Bitcoin experienced a drop of more than 50% in five months.
According to Glassnode, if history repeats itself, the BTC price could continue its downtrend for five months or more.
*This is not investment advice.
