Bitcoin (BTC) Price Drops Below $84K, Marking a 15% Decline Since the Start of March

Bitcoin continues to face massive selling pressure, with its price dropping below the $84,000 mark, marking a 15% decline since the start of March.

Bitcoin (BTC) has been encountering substantial selling pressure, resulting in a 15% price drop since the beginning of March, pushing it below the $84,000 mark. This downturn has sparked panic selling and rising fear, leading many investors to speculate on whether Bitcoin is entering a bear market after a period of strong gains.

The recent decline has also wiped out a portion of supply profitability, as on-chain data reveals that the percentage of Bitcoin supply in profit has dropped from 99% to 76%. This indicates that 23% of the total BTC supply is now in an unrealized loss.

According to CryptoQuant’s on-chain analyst, Maajid, such large drops in supply profitability usually occur due to weaker hands capitulating while long-term holders calmly assess market conditions.

Chart of BTC supply in profit/loss

As seen in the chart above, the percentage of Bitcoin supply in profit dropped rapidly from 99% to 70% during the consolidation phase in mid-2023. This large decline, spanning several weeks, occurred as weaker hands capitulated to selling pressure, while long-term holders remained undeterred.

After bottoming out at 70%, the percentage of Bitcoin supply in profit gradually recovered, finally returning to 99% by August 2023. However, this upward trend was short-lived, as the market encountered another wave of selling pressure, quickly decreasing the percentage of supply in profit to 76%.

This time, the decline was driven by a different factor: a portion of long-term holders, who typically remain optimistic even during market downswings, decided to take some profits as BTC approached the $70,000 zone.

Next days will be crucial for BTC price action

Bitcoin is struggling to regain higher prices, with weak price action and intense fear continuing to dominate sentiment. Many analysts are now calling for the end of this bull cycle, as BTC lost the $90,000 level weeks ago, failing to regain its previous momentum.

Currently, Bitcoin is stuck below $85,000, barely holding above $80,000, as bearish pressure keeps investors on edge. The market remains in a vulnerable position, with many expecting a further drop into lower demand levels. However, there is still hope for a recovery, as BTC could reclaim key levels and reignite buying interest.

Top analyst Axel Adler shared insights on X, revealing that the percentage of Bitcoin supply in profit has dropped from 99% to 76%, meaning that 23% of the total BTC supply is currently in an unrealized loss. This equates to approximately 4,561,966 BTC out of 19,834,633 BTC in circulation, marking a significant shift in market profitability.

Adler further noted that such a decline could trigger panic among inexperienced investors, potentially fueling more selling pressure. However, he pointed out that a similar trend occurred during the previous consolidation phase, when the percentage of supply in profit dropped to 70%, confirming macro market cycles that often precede strong recoveries.

For now, Bitcoin is in a delicate position, and the next few trading sessions will determine whether BTC can reclaim higher resistance levels or if bears will extend the current downtrend. Investors are closely watching whether this cycle mirrors past consolidations or if deeper losses are ahead.