Bitcoin Supply In Profit Drops to 85% Amid Market Crash
The recent crypto market crash has led to a decline in the Bitcoin BTC supply in profit, raising concerns of further sell-offs by holders at a loss.
Key Points:
- Bitcoin's supply in profit historically falls to around 85% during market downturns, with 15% in loss.
- Current trends mirror past cycles where BTC failed to maintain above short-term cost bases, risking further declines.
- If BTC doesn't recover above $113,100, a deeper price contraction could occur.
- Bitcoin struggles to hold above the 0.85 quantile at $108,600, indicating potential vulnerability.
- A continued drop may push BTC below $100,000 for the first time since May.
Market Dynamics:
- A longer consolidation phase might be needed due to repeated demand exhaustion.
- Long-term holders are increasing their spending, with daily volumes rising from 10,000 BTC to over 22,000 BTC.
- This persistent selling pressure is due to profit-taking by seasoned investors.
- Significant transactions include a whale moving 3,003 BTC to Binance and shorting BTC worth $227 million.
At present, BTC trades around $108,800, showing slight recovery within the last 24 hours.