Bitcoin On-Chain Data Suggests Seller Exhaustion as Realized Losses Fade

Bitcoin appears to be entering a phase of seller exhaustion after a period of significant volatility and consolidation. Following a bottom near $60,000 on February 5, the cryptocurrency has spent over two months grinding higher toward the $70,000 threshold. This price action occurs against a backdrop of macroeconomic instability, specifically geopolitical tensions in the Middle East that have driven oil prices above $100 per barrel. Despite these headwinds, on-chain data suggests that the aggressive selling seen in previous months is subsiding. According to CheckonChain, daily realized losses have declined to approximately $400 million. This is a significant drop from the peaks of $2 billion recorded on November 21 and February 5, levels that surpassed the intensity of the 2022 bear market. Glassnode data further supports this shift, with the realized profit-to-loss ratio rising to 1.4, its highest level since January. While realized profits remain near twelve-month lows at $300 million per day, the trend suggests that investors who entered at the $60,000 level are now marginally profitable and beginning to take gains. The transition from aggressive selling to net buy-side pressure in spot markets indicates that the supply of coins willing to be sold at current levels is diminishing, potentially paving the way for further upside as the market reaches a state of exhaustion.