Bitcoin (BTC) is Currently Navigating Troubled Waters. Below the Symbolic $90,000 Mark

Bitcoin is currently navigating troubled waters. Below the symbolic $90,000 mark, the landscape is tinged with red for recent holders

Bitcoin is currently trading below the symbolic mark of $90,000. While recent buyers are seen to be sitting in unrealized losses, crypto veterans appear to be staying the course amid the market's technical corrections. As institutions are quietly accumulating the asset, the cryptocurrency market is drawing a complex map with a fragile balance between latent losses and steadfast confidence.

This article delves into the intricacies of an asset that refuses to succumb to fatalism despite the storms that it has encountered.

Unrealized losses are a revealing indicator of underlying tensions. These losses, calculated between the average acquisition price and the current valuation, reflect the market’s psychological state.

Short-term holders, who bought at recent peaks, are still in a slump, with an average entry cost above $80,000 exposing them directly to the current volatility. However, this phase does not resemble historical crashes.

Recent corrections, though repeated, lack the brutality of previous cycles. In 2018 or 2021, declines regularly exceeded 50%, sweeping away even the strongest portfolios. Today, the drawdown remains contained, oscillating around 20%, raising questions about whether it is a technical pause or the start of a deeper reversal.

On the other hand, long-term holders, who bought BTC at lower prices, are still breathing easily. Their average cost, often below $30,000, offers protection from turbulence. But if bitcoin were to test $60,000, even the toughest would see their gains evaporate.

This highlights a precarious balance, where every price move resonates like a warning.

Despite appearances, bitcoin has not lost its shine. Nearly 75% of holding addresses still show profits, according to Glassnode, highlighting a reality often overlooked: the majority of investors remain profitable over time.

The “HODLers,” those steadfast accumulators over the years, embody this resilience, ignoring media noise and betting on historical cycles.

Institutions also play the troublemaker. While retail investors panic, BlackRock (NYSE:BLK) and others are scooping up BTC at discounted prices. Their logic is ruthless: every dip becomes an opportunity.

In April, Bitcoin ETFs recorded net inflows of $420 million, despite sales by some competitors, a divergence that recalls a golden rule: in the crypto space, the “smart money” buys when others doubt.

Even whales, holding over 1,000 BTC, refuse to yield. Their network activity, up 18% since January, signals aggressive accumulation, typical behavior of consolidation phases, where influential actors prepare the ground for the next ascent.

The emblematic block 666,666, recently mined, almost symbolizes this stubbornness: a wink to enthusiasts, convinced that bitcoin transcends cycles.

Here lies the paradox: bitcoin rewards patience but penalizes recklessness. Newcomers, attracted by promises of quick gains, bear the brunt of adjustments. Their mistake? Underestimating the asset’s structural volatility.

Short-term losses, though painful, fall within historical normality. Since 2010, bitcoin has experienced 15 corrections exceeding 30%… before always reaching new highs.

Experienced holders have understood: time is their ally. By extending their investment horizon, they neutralize shocks. The key? Iron discipline. Selling at lows means crystallizing losses; waiting, despite discomfort, allows capturing major trends.

This philosophy explains why 62% of the supply hasn’t moved for more than a year—a record.

Below $90,000, bitcoin embodies a fascinating duality. On one side, latent losses weigh on minds; on the other, unshakeable faith in its secular trajectory.

Past cycles have seen the asset rise from its ashes. For investors, the lesson is clear: in this dance between fears and opportunities, time remains the best ally.

The current bear market may be just a breath— a step towards new summits. And if, in this calm, bitcoin’s dominance dropped to 40%? Such a scenario would likely open a new chapter, potentially favorable to altcoins.