Bitcoin Realized Losses Are Drying Up, Says Glassnode—Is BTC About to Hit $90,000

Bitcoin’s recent pullback has rattled the market, but on-chain data suggests something interesting might be brewing beneath the surface. According to blockchain analytics firm Glassnode, Bitcoin holders may be showing early signs of seller exhaustion. Their Realized Loss metric, which tracks how much capital is lost when coins are sold below their cost basis, is trending lower. After intense sell-offs in February and March, current loss figures are significantly smaller. This drop-off in loss realization hints that panic selling may be fading. If true, BTC Price could be approaching a temporary bottom as emotions begin to cool down across the board.

Signs of Capitulation Cooling Off

Glassnode’s 6-hour rolling chart of Bitcoin Realized Loss paints a clearer picture of the current BTC market trend. Back in February and March, each dip in BTC price triggered massive waves of realized losses, reflecting widespread fear. However, with the most recent drop, those spikes are noticeably less extreme. Even though prices have fallen, investors appear less eager to sell at a loss. This could indicate that many reactive sellers have already left the market. Historically, this kind of capitulation fatigue often signals that the worst may be over, or at least that a stabilization phase is setting in.

Chart 1: BTC 6-Hour Rolling Losses, Source: X @glassnode

Altcoins Hit Hard as Liquidity Dries Up

While Bitcoin may be showing signs of stabilization, altcoins have taken a major hit. Glassnode’s data shows the altcoin market cap, excluding Bitcoin, Ethereum, and stablecoins, has dropped from $1 trillion in December 2024 to $583 billion today. That’s a staggering $417 billion wiped out. These tokens, which sit further out on the risk curve, tend to be the first to bleed when liquidity dries up. Investors are clearly pulling capital from high-risk assets as macro uncertainty continues. This sharp contraction underscores the fragile state of the broader crypto market and highlights the BTC market trend, showing how sentiment still leans cautious across most sectors.

Chart 2: Altcoin Market Cap Overview, Source: X @glassnode

Price Action Analysis Snapshot: What The Charts Are Saying

The BTC Price showed strong upward momentum on the 5-minute chart, forming a clear uptrend channel with higher highs and lows. The BTC price eventually broke above the channel but began to stall near the key resistance at $84,000, entering a phase of sideways consolidation. This indicates possible buyer exhaustion at current levels. 

Chart 3, Analyzed by Alokkp0608, published on April 12th, 2025

The RSI consistently hit overbought levels during the rally, suggesting strong buying pressure but also hinting at short-term pullbacks. Overbought readings aligned with local tops, while oversold dips acted as rebound points. Meanwhile, the MACD displayed mixed signals, golden crosses during the rise, and more frequent death crosses near resistance, reflecting weakening bullish momentum. A solid support remains around $81,500, and a break below this level could increase selling pressure.

Conclusion: Cautious Optimism as Bitcoin Tests Key Levels

While the broader crypto market remains cautious, there are early signs that the BTC Price might be nearing a short-term bottom. The drop in realized losses suggests that most panic sellers may have already exited, hinting at a slowdown in bearish momentum. Meanwhile, altcoins continue to suffer from sharp capital outflows, reinforcing a clear risk-off sentiment among investors. 

On the technical front, Bitcoin’s sideways consolidation near resistance and weakening MACD momentum show that bulls are starting to lose steam. However, the strong support at $81,500 could act as a key level for any corrective move. If that zone holds, it may pave the way for a fresh rally. As always, traders should stay alert and watch price behavior closely for signs of the next decisive move.