Bitcoin temporarily ended its correction and bounced from $80,000 to the current $93,000, according to TradingView. Indicators from the analytical source Glassnode, however, warn that Bitcoin is showing increasingly strong parallels with the first quarter of 2022. Back then, the market stayed longer in a sideways trend while a growing number of coins were in loss.

Bitcoin resembles the start of 2022

Currently, approximately 5 to 7 million BTC are in unrealized loss, clearly reflecting ongoing market tension. This range is very similar to the levels in 2022, when the market balanced on the edge between a mild decline and the beginning of a more significant weakening phase. Bitcoin is therefore at the boundary between a slightly negative environment and a deeper, structural correction.

An important element is also LTH SOPR, which tracks whether long-term holders are selling at a profit or a loss. Currently, this indicator remains above 1. This means major investors are still realizing profit. However, the range of these profits is noticeably narrowing. This exact phenomenon was observed in the first months of 2022, which further supports the scenario of a recurring market structure.

If a scenario resembling the first quarter of 2022 is indeed forming, it is likely that the market may enter a corrective phase. Such a decline often represents an ideal opportunity for regular Bitcoin accumulation. For example, through the exchange Binance, where you can currently receive a $100 bonus.

Demand weakens, liquidity drops

Although the other side of the market still shows a slightly positive capital inflow, demand intensity from ETFs, spot, and derivatives visibly weakens. At the same time, option volatility is narrowing, which often indicates that traders are leaning toward more cautious strategies.

Liquidity is gradually declining, increasing the market’s sensitivity to unexpected fluctuations. Therefore, it is extremely important for Bitcoin to stay above the $96,000 to $106,000 range. This zone represents a kind of last resistance that can prevent a return to a deeper decline.

Finally, it should be emphasized that although the parallels with 2022 are striking and analytical indicators suggest a similar dynamic, they do not represent any guarantee of identical market development. Bitcoin operates in changing conditions where new regulations, liquidity, or demand can lead to a completely different price trajectory.

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