Glassnode explained the real reason for the decline in Bitcoin, warned investors for this level! "Risk is not over!"

Bitcoin, while showing a downward trend that has wiped out billions of dollars from the market in recent weeks, Glassnode explained the real reason for the decline.

In its latest analysis, the on-chain crypto analysis platform ***Glassnode claimed that the price of Bitcoin is constantly under selling pressure from short-term investors.

The investor said that investors bought BTC at the $109,000 peak, but started to panic sell with a small drop.

Glassnode, stating that the decline in BTC and altcoins has been deepened by panic selling of short-term investors, said that further decline could occur if the sales continue.

Glassnode also stated that there is a significant discrepancy between the average purchase prices of these investors and the current market values of Bitcoin. According to the data, while the average purchase price of investors in October was $62,000, this price has now risen to $91,362. Faced with Bitcoin trading at $81,940, these investors are experiencing an unrealized loss of approximately 10.6%.

Glassnode analysts especially noted that the selling pressure due to market panic caused the on-chain data measuring whether short-term investors sold their assets at a profit or loss, SOPR indicator, to drop below 1.

The fall of SOPR below 1 is a sign that short-term investors are unable to overcome their fears and reduce their losses.

If sales continue, Bitcoin could drop to $70,000.