{"id":54139,"date":"2026-01-29T10:50:37","date_gmt":"2026-01-29T10:50:37","guid":{"rendered":"https:\/\/www.bitrabo.com\/discover\/?p=54139"},"modified":"2026-01-29T10:50:37","modified_gmt":"2026-01-29T10:50:37","slug":"bitcoin-supply-loss-reverses-watch-for-market-shifts","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/bitcoin-supply-loss-reverses-watch-for-market-shifts\/","title":{"rendered":"Bitcoin Supply Loss Reverses: Watch for Market Shifts"},"content":{"rendered":"\n

Cryptocurrency markets are facing turbulent times, and Bitcoin’s struggle to surpass the $90,000 mark reflects a broader atmosphere of uncertainty. As investors hold their breath, the price movement illustrates a period of consolidation marked by wavering confidence from both sides of the trading spectrum. This lack of clear direction has led to significant divergence among market analysts.<\/p>\n

Some analysts suggest that Bitcoin is simply recalibrating after its recent rally, while others express concern over signals indicating a possible continuation of a bearish trend into 2026. Notably, the absence of strong buying momentum above critical resistance levels raises alarms, particularly given the fragile macro-economic conditions global markets are undergoing.<\/p>\n

Compounding this cautious outlook, recent findings from a report by CryptoQuant reveal a significant change in on-chain metrics. The Supply in Loss (%) indicator has seen an uptick, a trend often associated with the initial phases of bear markets historically.<\/p>\n

Historical patterns indicate that during previous downturns, this metric started to rise as price weaknesses became more pronounced. This trend signifies that losses are widening, impacting not just short-term speculators but also longer-term investors, indicating a potential shift in market sentiment from temporary pullbacks to more entrenched declines.<\/p>\n

<\/span>Rising Supply in Loss Sparks Bear Market Warnings<\/span><\/h2>\n

Reviewing past trends in Bitcoin’s history during 2014, 2018, and 2022 shows that the behavior of the Supply in Loss (%) followed a predictable path. This indicator<\/a> frequently climbed before reaching a bottom, even as prices continued to sag. This early sign did not predict an immediate recovery but rather an enduring period of unrealized losses across the sector.<\/p>\n

<\/p>\n

The current state of Supply in Loss is still below historical capitulation levels, which indicates that the market may not have entered a phase of widespread panic just yet. However, the critical factor lies in the changing dynamics; the recent increase suggests that losses are once again spreading, a situation often linked to the market shifting towards more defensive strategies.<\/p>\n

This new insight contradicts the theory that ongoing price weakness is just a natural pause in a more extensive upward trend. Instead, it opens the door for a potential bear market scenario, characterized by elongated periods of price stabilization, recurring downward pushes, and delayed recoveries.<\/p>\n

While short-term price rebounds are possible, current on-chain signals indicate a strong likelihood of continued downside risk until loss conditions either stabilize or approach the extremes noted during historical downswing cycles where market bottoms formed.<\/p>\n

<\/span>Bitcoin’s Challenge at Critical Resistance Levels<\/span><\/h2>\n

The price dynamics of Bitcoin reveal a market confined in consolidation following a sharp downturn. After hitting a resistance around $125,000 in October, BTC transitioned into a pronounced downtrend, characterized by sequential lower highs and lower lows. The substantial sell-off into late November breached both the 50-day and 100-day moving averages, indicating a significant shift in market control towards sellers.<\/p>\n

\"BTC<\/p>\n

 <\/p>\n

Since early December, Bitcoin’s price has found relative stability between approximately $85,000 and $92,000, establishing a sideways trading range rather than a swift downward trend. This behavior suggests a tempering of aggressive sell pressure, yet determination among market participants remains tepid.<\/p>\n

The direction of the 50-day moving average maintains a downward trend, acting as a barrier to upward moves, while the 100-day also declines, reinforcing resistance around the $94,000\u2013$96,000 resistance zone. Additionally, the 200-day moving average is positioned significantly lower near the mid-$70,000s, hinting that the major cycle has not fully reset, despite the recent declines.<\/p>\n

Although selling activity peaked during the November drop, it has since slowed, indicating diminished market engagement rather than a resurgence in demand. As long as Bitcoin prices linger below the declining moving averages, upward movements are likely to be corrective. For a more optimistic near-term outlook, sustained trading above $92,000 is essential, while a breach below $85,000 would renew downside vulnerabilities.<\/p>\n

Featured image from ChatGPT, chart from TradingView.com<\/p>\n","protected":false},"excerpt":{"rendered":"

Cryptocurrency markets are facing turbulent times, and Bitcoin’s struggle to surpass the $90,000 mark reflects a broader atmosphere of uncertainty. As investors hold their breath, the price movement illustrates a period of consolidation marked by wavering confidence from both sides of the trading spectrum. This lack of clear direction has led to significant divergence among […]<\/p>\n","protected":false},"author":14,"featured_media":54140,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"Bitcoin Supply Loss Reverses: Watch for Market Shifts - Bitrabo","description":"Cryptocurrency markets are facing turbulent times, and Bitcoin's struggle to surpass the $90,000 mark reflects a broader atmosphere of uncertainty. As investors"},"footnotes":""},"categories":[316],"tags":[3683,448,3399,496,1602,1361,762,1899],"class_list":["post-54139","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-bear","tag-bitcoin","tag-loss","tag-market","tag-potential","tag-signal","tag-supply","tag-turns"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/54139","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=54139"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/54139\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/54140"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=54139"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=54139"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=54139"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}