Glassnode: Market to Remain Weak Until Bitcoin Returns to $62,400 Short-Term Holders' Cost Price

Crypto data analytics platform Glassnode has released a report stating that Bitcoin price action has stalled and investor sentiment has been lukewarm over the past six months. However, the past three months have seen a significant change, with increased downward pressure resulting in the crypto market experiencing the most significant pullback in this cycle. Nonetheless, from a macro perspective, the Bitcoin spot price is approximately 22% below its all-time high, which is still a relatively small decline when compared to the magnitude of pullbacks during historical bull markets, suggesting that the majority of Bitcoin investors are still taking substantial profits, underscoring the robustness of their positions.
However, the short-term holder community is still suffering from high unrealized losses, suggesting that they are currently the most vulnerable group and will be the main source of selling pressure in a falling market. The short-term holders group represents new demand in the market and appears to be bearing most of the market pressure. Their unrealized losses dominate the overall picture and the size of this loss has continued to increase over the past few months. 
We can corroborate these observations by assessing the short-term holders MVRV ratio, which has fallen below the break-even value of 1.0. This suggests that, on average, new investors are holding positions at a loss.
Overall, the market is expected to continue to weaken unless the bitcoin price returns to the short-term holders' cost basis of $62,400. At the same time, profit and loss activity remains very light, suggesting that the current price range is saturated, with key metrics such as the sell-side risk ratio hinting at the possibility of higher volatility ahead.