Bitcoin [BTC] Has Entered a Consolidation Phase, Showing Signs of Cooling Without Triggering Widespread Selling

Bitcoin [BTC] has entered a consolidation phase, showing signs of cooling without triggering widespread selling.

Bitcoin price has been consolidating, showing signs of cooling without triggering widespread selling or panic.

On-chain data from Glassnode sheds light on this shift in market positioning.

Holders Unloading High Profits, Mid-Range Builds

According to Glassnode, there has been a shift in the share of Bitcoin held at different unrealized profit/loss ranges in 2025.

Those holding BTC at a -23.6% to -10% loss saw an increase of 7.75% in their share this year. This aligns with the narrative of more holders being "underwater."

On the other hand, those with high-profit holdings, specifically in the 40–60% range, saw a decrease of 3.57%, while those with mid-profit positions (20–40%) saw an increase of 3.45%.

This suggests that coins are migrating from the high-profit bands to more mid-range levels. It aligns with a market in cooldown mode but not showing panic behavior or large-scale selling.

Pressure Builds on Short-Term Holders

Further analysis shows significant pressure on short-term holders, those who acquired Bitcoin within the past 155 days.

A substantial portion, over 2.8 million BTC from this group, is currently "underwater," presenting large unrealized losses.

However, it’s crucial to note that most investors are engaging in holding strategies rather than selling at a loss.

The average acquisition price for short-term holders stands at $92,500, placing Bitcoin (BTC) just below this critical threshold.

This price range, according to CryptoVizArt, a senior analyst at Glassnode, identifies a supply zone.

Investors who bought in this zone, which is $90K-$93K, might sell if the price returns to this area.

But, for the price to move higher from here, it needs to break out of this zone to continue the bull market journey.

An Interesting Twist: Bitcoin’s Mean Dollar Invested Age

Focusing on another aspect, Bitcoin’s Mean Dollar Invested Age (MDIA) by Santiment has seen an increase from 418 days on the 4th of February to 432 days on the 26th of March.

This shift showcases a greater presence of older coins remaining dormant, suggesting a preference for accumulation over distribution.

During this period, Bitcoin’s price decreased from $101,403 to $84,330. Despite the price variation, the MDIA indicator consistently showed an upward trend.

This divergence suggests that long-term holders are maintaining their composure and are less likely to be easily swayed by price fluctuations.

It hints at a more subtle and patient accumulation phase, as investors appear content to hold through the volatility.

MVRV Long/Short Difference Drops

Another key metric to watch is the MVRV Long/Short Difference, which measures the profitability of long-term holders (LTH) against short-term holders (STH).

This indicator tracks the difference in unrealized profit or loss relative to the last time these two holder groups sold.

According to Santiment data, the MVRV Long/Short Difference dropped from 22.12% on the 3rd of February to 6.59% on the 26th of March.

This signals a significant reduction in LTH's profitability edge, although it seems to be impacting sentiment to a lesser degree.

A Final Note

March saw the Exchange Whale Ratio, tracked by CryptoQuant, remaining above the 0.50 mark throughout the month.

This suggests a sustained presence of large traders on exchanges, despite the potential for them to move their coins quickly due to their significant holdings.

The peaks in the ratio on the 14th of March and the 20th of March coincided with periods of price stabilization, such as the brief stabilization around $84,000 and the subsequent recovery to $88,200.

This pattern hints at heightened whale activity during phases of low volatility, without necessarily triggering major selloffs or buy-side pressure that would lead to substantial price movements.