As Bitcoin continues to trade sideways below the $85,000 mark as of April 18, the latest data from on-chain analytics firm Glassnode shows the asset recording significant unrealized losses for short-term holders.

While these short-term holders remain underwater with substantial unrealized losses, the data also indicates that long-term holders are still broadly in profit. However, mounting unrealized losses are putting even these seasoned holders at risk of losing their gains.

Unrealized losses represent the total amount of losses held across all Bitcoin in circulation, calculated from the difference between the average acquisition cost and the current market value.

Bear market already?

As the crypto market moves with caution amid debates about the sustainability of the recent bull run, the rise in unrealized loss per percent drawdown has captured the attention of both retail and institutional investors.

According to the data, repeated price corrections across the broader crypto market have not yet signaled sustainable bullish momentum. Meanwhile, Bitcoin appears to be following a historical bearish pattern observed in previous cycles.

Glassnode revealed that the unrealized losses faced by short-term holders are a direct response to the recent market dips. 

Although these corrections are not as sharp as those in earlier cycles that triggered full-blown bear markets, the resemblance in pattern has sparked speculation that a bearish phase may already be underway.

For long-term holders, the data painted a mixed picture. While they remain largely in profit, they are now vulnerable to absorbing losses if downward momentum persists. 

Notably, the increasing number of top Bitcoin buyers maturing into long-term holders could help the market withstand deeper drawdowns.

Although this key metric has historically aligned with bear market confirmations, it alone does not officially define one. Despite these bearish indicators, Bitcoin whales and major investment firms have not slowed down in their accumulation efforts.