Bitcoin (CRYPTO: BTC) has bounced off recent lows but continues to trade in a structurally fragile environment, defined by weakening demand and rising on-chain stress.

What Happened: Glassnode data shows Bitcoin holding above the True Market Mean, a key valuation band that historically separates shallow corrections from deeper bear phases.

But the broader market setup is increasingly echoing early 2022, with over 25% of BTC supply now sitting at a loss and price trading below major cost-basis quantiles.

Unrealized losses have surged to 5–7 million BTC, the highest since 2023 and nearly identical to the stagnation zone seen in early 2022.

Still, capital momentum remains slightly…

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