Glassnode flags extended sell-side pressure ahead

BTC is down ~28% this month; Glassnode’s sub‑1 realized P/L ratio signals 5–6 more months of downside pressure.

Bitcoin has approached previous highs following a sharp decline in February, though blockchain analytics firm Glassnode has indicated further downward pressure may persist for several months, according to the company’s recent analysis.

Glassnode reported that Bitcoin’s realized profit/loss ratio, measured as a 90-day moving average, has fallen below 1. The firm stated this metric suggests the decline could continue for an additional five to six months.

In a post on social media platform X, Glassnode cited historical data showing that drops in the Realized Profit/Loss Ratio below 1 have preceded decline periods lasting at least six months. The firm noted that a return above 1 generally indicates a decrease in selling pressure.

The analytics company referenced the 2022 and 2018 bear markets as comparative examples. During the 2022 bear market, Bitcoin declined 25% in value six months after its profit/loss ratio fell below 1, according to Glassnode. Under similar conditions in 2018, Bitcoin experienced a drop exceeding 50% over five months.

Glassnode stated that if historical patterns repeat, the cryptocurrency’s price could continue its downward trend for five months or longer.

The Realized Profit/Loss Ratio measures the ratio of profits to losses realized on the Bitcoin network, providing insight into market sentiment and selling pressure among holders.