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Bitcoin is currently navigating through a consolidation phase, with rising unrealized losses impacting short-term holders while long-term investors continue to accumulate.
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Despite a notable price drop of 17%, on-chain metrics indicate that many holders remain unmoved, showcasing confidence amid market fluctuations.
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According to Glassnode, the percentage of Bitcoin held at moderate unrealized losses has surged, illustrating the resilience of long-term holders in the face of recent market pressures.
This article examines the current state of Bitcoin, focusing on market dynamics affecting short and long-term holders amidst a consolidation phase.
Understanding the Current Market Landscape for Bitcoin
As Bitcoin experiences a downturn, metrics reveal a complex landscape for investors. Holdings categorized as experiencing losses between -23.6% and -10% have increased by 7.75% in 2025. Conversely, there’s been a 3.57% decline in high-profit holdings (between 40–60%), further evidenced by a 3.45% rise in mid-profit positions (20–40%). This suggests a significant migration of coins from high-profit brackets to lower ones.
Source: Glassnode
As Bitcoin’s value remains under scrutiny, it has created an environment with significant implications for both short-term and long-term holders.
Short-Term Pressure and Resistance Levels
Short-term holders, those who acquired Bitcoin within the past 155 days, are feeling the pressure, with over 2.8 million BTC currently underwater. The average acquisition price for this group is around $92,500, closely aligning with Bitcoin’s current trading levels. This proximity makes the $90K–$93K range a critical area to watch as it serves as a potential supply zone.
CryptoVizArt, a senior analyst at Glassnode, notes that this threshold is crucial; if Bitcoin prices reach the $90K–$93K level, it may trigger selling by investors who bought in this range. Conversely, breaching this resistance could open the door for Bitcoin to pursue new all-time highs.
Source: X
Long-Term Holders Exhibit Resilience
In contrast to the reaction of short-term holders, long-term investors appear to be adopting a more measured approach. The Mean Dollar Invested Age (MDIA) of Bitcoin has increased from 418 to 432 days between February 4 and March 26, indicating that many older coins are being held rather than being circulated.
Source: Santiment
Market Dynamics and Accumulation Trends
Although Bitcoin’s price has dwindled from $101,403 to $84,330, the MDIA trend suggests that long-term holders are less fazed by market volatility, indicating a potential accumulation phase rather than widespread sell-offs. This stability among long-term holders further emphasizes a collective sentiment leaning towards resilience amid falling prices.
Additionally, the MVRV Long/Short Difference, which evaluates holder profitability, has sharply declined from 22.12% to 6.59%, reflecting a reduction in profitable holdings among long-term investors. Despite this, the ongoing sentiment remains modest and steady, showcasing confidence in Bitcoin’s long-term potential.
Source: Santiment
Whale Activity and Market Stability
Furthermore, the Exchange Whale Ratio suggests that big investors are not dumping their holdings despite the current market challenge. Data indicates this ratio has remained above 0.50 throughout March. This trend signals that whale activity has contributed to market stabilization, as they seem to be accumulating rather than liquidating their positions.
Source: CryptoQuant
Conclusion
In summary, Bitcoin is currently in a phase of cooling rather than a breakdown. The market metrics indicate a determined holding pattern among long-term investors, lower short-term profitability, and an environment where whale activity aids in maintaining stability. As Bitcoin remains within the resistance range of $90K-$93K and support at $87K-$89K, the focus may shift to broader macroeconomic factors influencing market sentiment moving forward.
