Bitcoin Falls Below 75% Cost Basis, Signaling Bear Market
Glassnode, a leading on-chain analytics firm, reports on X that Bitcoin’s realized price distribution has dipped below the 0.75 cost basis percentile. Historically, this level marks the onset of bear market conditions. Analysts note that in past cycles, regaining and sustaining this threshold has been critical to restoring a bull market. Traders will closely watch price movements as bulls aim to reclaim this key cost basis level. The report underscores growing bearish pressure on Bitcoin and highlights cost basis, market cycles, and price levels as vital indicators for market participants.
Bearish
Glassnode’s finding that Bitcoin fell below the 0.75 cost basis percentile historically signals the start of bear market territory. Previous cycles saw extended price declines and increased volatility when this threshold was breached. In the short term, traders may liquidate positions anticipating further downside. Long-term recovery in past bear markets only occurred after prices reclaimed and held above this level. If Bitcoin fails to quickly rebound above the 0.75 cost basis percentile, bearish sentiment is likely to persist, keeping market outlook cautious and favoring downside momentum.