Bitcoin Correction Could Deepen Before Recovery as Only 9% of Supply at Loss

Only around 9% of the Bitcoin supply is currently in the red, carrying up to 10% unrealized losses, according to Glassnode. Comparatively, the local bottom of this cycle saw more than 25% of supply at up to 23% losses, the analysts ￰0￱ fell to around $75,000 on April 9 in a correction that took it down 29% from its January peak. Additionally, global bear markets have reached more than 50% supply with up to 78% losses, Glassnode observed before adding, “This dip remains relatively shallow.” Sizing Up the Dip Trading at $110k, only ~9% of BTC supply is in loss, carrying up to 10% unrealized ￰1￱ contrast, the local bottom of this cycle saw >25% of supply at up to 23% losses, and global bear markets have reached >50% supply with up to 78% ￰2￱ dip… ￰3￱ — glassnode (@glassnode) September 2, 2025 Not The Peak of This Cycle The depth of the correction from the August 14 peak of just over $124,000 is currently around 13.4% when the asset double-dipped to $107,500 earlier this ￰4￱ the bull market of 2017, BTC fell 36% in September , and in 2021, it fell 24% this month before recovering in the fourth quarter.

However, those previous cycles did not have the massive buying pressure from institutional investors such as ETFs and BTC treasury companies , so this correction could remain ￰5￱ Ted Pillows observed that the recent correction mimics the Q2, 2025 and Q3 2024 dumps when the asset fell by 30%. “I’m not saying that it’ll happen again, but Bitcoin could go below $100,000.” “As I have said before, this isn’t the top, but just a normal correction before a new ATH,” he added. $BTC recent correction mimics the Q2 2025 and Q3 2024 ￰6￱ had a 30% correction before BTC bottomed out. I’m not saying that it’ll happen again, but Bitcoin could go below $100,000.

As I have said before, this isn’t the top, but just a normal correction before a new… ￰7￱ — Ted (@TedPillows) September 1, 2025 Meanwhile, MN Fund co-founder Michaël van de Poppe said that the closer we get to the Sept. 17 Federal Reserve meeting, when there is a 91% chance rates will fall, the less likely this correction will continue. “Yes, we could have a deeper correction, and yes, I’m heavily buying that one, but the closer we get to the Fed meeting, the less of a chance I’d give the correction to continue, especially if BTC breaks through $112k.” BTC Starts to Recover Bitcoin is leading the markets on Wednesday morning in Asia, having tapped $111,500, climbing from an intraday low of $108,500 on ￰8￱ from a few spurious dips, the asset has been climbing since Monday and now needs to recover key resistance at $112,000.

Failure to break above this level could lead to a plunge to support at $105,000 and a deeper ￰9￱ has pulled total market capitalization up 1.3% on the day to reach $3.93 trillion at the time of writing.