Bitcoin (BTC) has clawed back from recent lows, which sounds encouraging until you look under the hood. The market structure right now bears an uncomfortable resemblance to early 2022, and that's not exactly a warm memory for crypto investors.

According to Glassnode data, Bitcoin is still trading above the True Market Mean, a key valuation floor that historically separates routine pullbacks from full-blown bear markets. That's the good news. The less-good news? More than 25% of all BTC supply is now sitting at a loss, and price is trading below major cost-basis levels. That's textbook 2022 territory.

Unrealized losses have surged to between 5 and 7 million BTC, the highest level since 2023 and nearly identical to the stagnation zone Bitcoin occupied in early 2022. Still, there's a sliver of optimism: realized cap is expanding by about $8.7 billion per month, meaning capital is still flowing in. That's helping support price above key levels and could signal a bottom is forming, assuming those inflows don't reverse.

Long-term holders are continuing to distribute coins at a profit, but their margins are thinning, which only strengthens the 2022 parallel.

Off-chain signals aren't much cheerier. ETF flows have turned negative, suggesting institutional buyers are taking a breather. Spot cumulative volume delta across major exchanges shows persistent selling pressure from active traders. Futures markets are equally subdued: open interest is dropping, leverage is muted, and funding rates have reset to neutral. Translation? Speculative longs have been flushed out, and traders aren't rushing back in.

Even the options market, which briefly spiked with fear earlier this week, has already calmed down. It's a market in wait-and-see mode, not panic mode, but definitely not risk-on mode either.