Bitcoin signals potential seller exhaustion as realized losses decline

Bitcoin may be entering a phase of seller exhaustion. After bottoming near $60,000 on Feb. 5, the asset has spent more than two months consolidating, gradually grinding higher toward the $70,000 level. This came alongside macro uncertainty with the Middle East conflict pushing oil prices well above $100 a barrel.

Data from CheckonChain suggests that selling pressure is beginning to ease. Realized losses are currently around $400 million per day, still elevated compared to previous years, but trending lower in recent weeks.
Realized losses had spiked to as much as $2 billion on Nov. 21 and Feb. 5, reaching levels not seen in several years and surpassing those seen during the 2022 bear market, according to the data.

"Spot markets are shifting from aggressive selling to net buy side pressure, realized profits and losses are both declining," said CheckonChain.

Realized Loss (CheckonChain)

Glassnode data reinforces this trend. On a seven-day moving average, realized profits are around $300 million per day, near twelve-month lows. This suggests that investors who accumulated bitcoin at $60,000 are now marginally in profit and beginning to take some gains.

Meanwhile, the realized profit-to-loss ratio has risen to 1.4, its highest level since January, according to Glassnode data. This metric, which compares the value of coins moved at a profit to those moved at a loss, shows that realized profits now outweigh losses.

These indicators point toward a market where selling pressure is fading, raising the likelihood that bitcoin is approaching a phase of seller exhaustion.