Bitcoin Price trading below $111.4k could signal a bear market

Bitcoin Price Faces Bearish Shift After Record Losses Test Investor Faith

Onchain analytics firm Glassnode has warned that the recent decline in BTC value could be the start of a bear market. In a post on X, its analysts noted that Bitcoin trading below $111,400 might be the signal.

According to the post, the short-term holder (STH) cost basis is now $111,400. The Bitcoin STH cost basis or realized price reflects the average price paid for BTC by short-term investors.

Glassnode said:

The opinion from Glassnode follows the recent crypto market crash, which resulted in the liquidation of $1.71 billion worth of positions. With long traders losing $1.62 billion in just 24 hours, the liquidation event has raised eyebrows as a potential sign of bearish turnaround.

While BTC is trading close to $113,000, concerns about what is next for the flagship asset are growing. Crypto trading fund Swissblock noted on X that Bitcoin has hit a correction trend while altcoins are losing support.

However, it added that risks remain relatively stable, and as long as BTC holds $112,000, the flagship asset can rebuild its strength. Still, it acknowledged that $110,000 will be the lifeline support for the flagship asset.

What’s Next for The Bitcoin Price?

Meanwhile, crypto analyst and Alphractal founder Joao Wedson believes Bitcoin already is showing signs of cycle exhaustion. He observed that BTC profitability is drying up as investors accumulate at high prices.

Wedson said:

He added that the high STH realized price means BTC’s profit potential is now lower than before. The analyst expects this would discourage some institutional investors who should have bought at lower levels.

His opinion that the Bitcoin price momentum might fade aligns with other analysts. Glassnode analysts observed that the Bitcoin spot price shows cooling momentum, exchange-traded funds (ETFs) inflows are slowing, and derivatives are signalling a sell.

Even Santiment observed that recent conversations around “buying the dip” after today’s decline might be too early. They described it as a sign that the bottom is not in yet.

The analyst noted that prices usually move opposite to crowd expectations and expect further decline in value. They added that the recent pullback only tests investors’ patience and expects further decline before a major rebound.

Nevertheless, Santiment does not see such pullbacks as signs of the bull market being over. In fact, they noted that the fact that Bitcoin key stakeholders are still accumulating and the supply of BTC on exchanges is dropping are all positive signs. Still, they warned that anyone buying the dip now should be cautious.