Bullish On-Chain Signals Met with Unrealized Losses as Bitcoin Market Remains Tense

Bitcoin's on-chain metrics have turned bullish, signaling potential price increases. However, substantial unrealized losses among holders could cap any rally.

The MVRV ratio and exchange netflow have shifted positive, indicating that long-term holders are accumulating and selling pressure is easing.

But a significant portion of the short-term holder supply remains in an unrealized loss position, with many investors still underwater from higher prices.

This creates resistance as these holders may sell to break even when the price approaches their cost basis.