On-chain data shows the percentage of the Bitcoin supply in loss has surged to almost 50% now as the crypto\u2019s price tumbles below $20k.<\/p>\n
49.94% Of The Total Bitcoin Supply Is Now Holding Some Loss<\/p>\n
As pointed out by an analyst in a CryptoQuant post, the drop below $20k has now put almost 50% of the supply underwater.<\/p>\n
The \u201cpercent supply in loss\u201d is an indicator that measures what part of the total Bitcoin supply is currently in the red.<\/p>\n
The metric works by checking the transfer history of each coin on the chain to see what price it was last moved at.<\/p>\n
If the previous selling price of a coin was more than the current BTC price, then that particular coin is being held at some loss right now.<\/p>\n
Related Reading |\u00a0Bitcoin Long-Term Holders Now Own Nearly 80% Of Realized Cap<\/p>\n
On the other hand, if the coin was last moved at a lower price than now, then the coin is in profit instead. The supply in loss naturally only counts the former type of coins.<\/p>\n
Now, here is a chart that shows the trend in the Bitcoin supply in loss over the last few years:<\/p>\n\n
Looks like the value of the indicator has been rising up recently | Source: CryptoQuant<\/p>\n
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.<\/p>\n
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.<\/p>\n
Related Reading |\u00a0Mike McGlone Says $20,000 Is The New $5,000 For Bitcoin, But Is He Right?<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
BTC Price<\/p>\n
At the time of writing, Bitcoin\u2019s price floats around $19.2k, down 33% in the last seven days. Over the past month, the crypto has lost 37% in value.<\/p>\n
The below chart shows the trend in the price of the coin over the last five days.<\/p>\n\n
The value of the crypto seems to have plunged down over the past day | Source: BTCUSD on TradingView
\nFeatured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
On-chain data shows the percentage of the Bitcoin supply in loss has surged to almost 50% now as the crypto\u2019s price tumbles below $20k.<\/p>\n
49.94% Of The Total Bitcoin Supply Is Now Holding Some Loss<\/p>\n
As pointed out by an analyst in a CryptoQuant post, the drop below $20k has now put almost 50% of the supply underwater.<\/p>\n
The \u201cpercent supply in loss\u201d is an indicator that measures what part of the total Bitcoin supply is currently in the red.<\/p>\n
The metric works by checking the transfer history of each coin on the chain to see what price it was last moved at.<\/p>\n
If the previous selling price of a coin was more than the current BTC price, then that particular coin is being held at some loss right now.<\/p>\n
Related Reading |\u00a0Bitcoin Long-Term Holders Now Own Nearly 80% Of Realized Cap<\/p>\n
On the other hand, if the coin was last moved at a lower price than now, then the coin is in profit instead. The supply in loss naturally only counts the former type of coins.<\/p>\n
Now, here is a chart that shows the trend in the Bitcoin supply in loss over the last few years:<\/p>\n
Looks like the value of the indicator has been rising up recently | Source: CryptoQuant<\/p>\n
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.<\/p>\n
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.<\/p>\n
Related Reading |\u00a0Mike McGlone Says $20,000 Is The New $5,000 For Bitcoin, But Is He Right?<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
BTC Price<\/p>\n
At the time of writing, Bitcoin\u2019s price floats around $19.2k, down 33% in the last seven days. Over the past month, the crypto has lost 37% in value.<\/p>\n
The below chart shows the trend in the price of the coin over the last five days.<\/p>\n
The value of the crypto seems to have plunged down over the past day | Source: BTCUSD on TradingView
\nFeatured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com<\/p>\n
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