Bitcoin supply in loss hits 10.46 million BTC amid support walls

Zarardaki arz indicator resurfaces

Analyst Ali Charts, referencing Glassnode’s on-chain data, noted that past occasions when supply in loss exceeded 10 million BTC have often overlapped with Bitcoin’s bottoming phases. This indicator measures the proportion of circulating coins that were acquired above the current price. A rapid increase signals that a wider segment of the market is now holding unrealized losses.

Glossary: Glassnode is an analytics platform that monitors blockchain data to gauge investor sentiment. The supply in loss indicator tracks the number of BTC currently valued below their acquisition cost.

Data suggests that during such periods, selling pressure in the market can decrease. This is likely because many investors are unwilling to realize losses by selling their assets at a discount. As a result, forced selling becomes less common and the market often transitions to a phase of searching for a new bottom.

Ali Charts highlighted through Glassnode data that supply in loss exceeding 10 million BTC has often emerged near significant Bitcoin bottom zones.

However, this signal alone does not guarantee a sharp recovery. Rather, it indicates mounting stress in the market and a potentially stronger possibility of bottom formation. During these episodes, Bitcoin may continue moving sideways or experience ongoing volatility.

Buy walls mark support region

Following the recent market decline, early signs of a gradual resurgence in Bitcoin demand have been observed. According to analyst CW, new buy walls have appeared between $59,400 and $61,100. These zones are areas with concentrated buy orders and serve as key liquidity pools that may help stabilize prices in the event of further pullbacks.

On the hourly chart, Bitcoin has rebounded from its latest low and risen above this cluster of buy orders. Consecutive support levels now suggest that buyers are actively defending lower price points following the recent market selloff.

CW’s analysis indicates an absence of substantial sell walls between the current price and $68,500, putting the focus on whether buyers can maintain momentum.

On the resistance side, the next major liquidity clusters are at $68,500, $70,000, and $72,000. If the price rally continues, sellers could become more active around these levels. In the short term, the market’s main concern is whether Bitcoin can sustain itself above the newly established buy walls.