Brace For More Downtrend: 15% Of Bitcoin Supply Is Now In Loss
23 Novembre 2021 - 8:00PM
NEWSBTC
Data shows around 15% of the total Bitcoin supply is now in loss, a
value that has historically been sufficient to push the price down.
Percentage Of Bitcoin Supply In Profit has Fallen Down To Just 85%
As per the latest weekly report from Glassnode, the total BTC
supply in profit has fallen down to just 85% this week, meaning
that 15% of the supply is now in loss. The “percent supply in
profit” is a Bitcoin indicator that highlights the share of the
total supply that’s currently in profit. The metric works by
looking at what price each coin in the chain was last moved at. If
this price was less than the current price, then the coin is said
to be in profit. While if this price was higher, then the coin is
considered to be in loss. If the indicator attains very high values
(more than 95%), then a Bitcoin market top may follow soon. But if
the metric’s values are low enough (less than 5%), then a bottom
could be formed instead. Related Reading | IMF Report On El
Salvador Is Positive… Except For Everything Bitcoin-Related Now,
here is a chart that shows the trend in the value of the percent
BTC supply in profit over the past year: Looks like only 85% of the
BTC supply is now in profit | Source: The Glassnode Week Onchain
(Week 47) As the above graph shows, the percent supply in profit
has severely fallen off in the past week as Bitcoin’s price
declines. Now, around 15% of the total supply is in loss. The
report mentions that the 85%-90% zone may be considered as a “bull
and bear transition zone.” There are two instances of the indicator
entering this zone previously in the chart. Related Reading
| Inverse Signals: Why Bitcoin Weakness Is Attributed To
Dollar Strength The first was when the May Bitcoin crash happened,
and the second coincided with the El Salvador Day crash. The report
notes that a value of 85% is enough to push the price of the crypto
down if no higher value is clamed in a reasonable timeframe,
similar to what happened during those instances. BTC Price At the
time of writing, Bitcoin’s price floats around $56.8k, down 6% in
the last seven days. Over the past month, the coin has lost 5% in
value. The below chart shows the trend in the price of BTC over the
last five days. BTC's price slides down in the last few days |
Source: BTCUSD on TradingView Over the last week, Bitcoin has
mostly consolidated below the $60k price mark. Currently, it’s
unclear when the coin may recover, but if the percentage of supply
in profit is anything to consider, BTC may decline even further.
Featured image from Unsplash.com, charts from CryptoQuant.com,
TradingView.com
Quant (COIN:QNTUSD)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Quant (COIN:QNTUSD)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024