49.94% Of The Total Bitcoin Supply Is Now Holding Some Loss
As pointed out by an analyst in a CryptoQuant , the drop below $20k has now put almost 50% of the supply underwater.The “percent supply in loss” is an indicator that measures what part of the total Bitcoin supply is currently in the red.
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Looks like the value of the indicator has been rising up recently | Source:As you can see in the above graph, the percentage of the Bitcoin supply in loss has been going up in recent weeks as the price has been crashing down. The latest drop in the value of the crypto, which has now taken it below the $20k level, has pushed a further amount of supply underwater.
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Now, the total percentage of the supply in the red has reached very nearly 50%. Historically, periods with value of the indicator between 50% to 60% have been when the coin has observed bottoms before. Because of this, the range may be ideal for accumulating Bitcoin. However, a real bottom may still have some ways to go as the supply in loss has only just now reached the 50% mark.During the last two bottoms, the value of the metric was at least 55%. If a similar pattern follows now as well, then the crypto may have potential for more downtrend before the bottom is finally in.
BTC Price
At the time of writing, Bitcoin’s price floats around $19.2k, down 33% in the last seven days. Over the past month, the crypto has lost 37% in value.
The below chart shows the trend in the price of the coin over the last five days.The value of the crypto seems to have plunged down over the past day | Source:
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com