According to a recent report from CryptoQuant, Bitcoin's unrealized loss pattern has shown a breakout into the buy zone.
This particular model provides on-chain data showing how many Bitcoin investors are currently suffering unrealized losses. When in a bear market, the indicator tends to increase as it bottoms.
However, as the volume of the cryptocurrency market increases, Bitcoin's peaks and troughs become narrower over time, causing the top of this pattern to also decrease with each cycle. In this current cycle, the unrealized loss indicator peaked during the 2022 FTX bust and recently broke out of the buy zone due to Bitcoin's strong recovery.
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