After moving sideways over the weekend, Bitcoin suffered another drop. So, what to expect for the largest cryptocurrency by market cap now? cryptocoin.com We are giving the details as…
What are the prospects for Bitcoin?
According to a report by Glassnode Insights, as Bitcoin bounces back to yearly lows, buyers are trying to overcome the bears and establish new support. However, the report states that the selling pressure is “permanent” as people dump their BTC due to the current macro-economic environment. The new level could be broken at any point if the bulls continue to lose momentum or the sellers reach an exhaustion level. Glassnode Insights added the following:
A relative balance has been established with the horizontally moving prices in recent weeks. However, given the limited fresh demand that comes in, this delicate balance could be upset by any significant degree of vendor exhaustion or, conversely, a resurgence of vendors.
15% of investors are at a loss
Additionally, the report claims that speculators recorded a total unrealized loss of 15 percent. Most of these traders bought at around $46,400 and are currently holding their positions at a loss against long-term investors who posted an average purchase price of $39,200. Glassnode added the following statements:
We can see that non-trivial daily losses have been going on for more than two months, which equates to about 0.5 percent of the daily market cap. While significant, losses of this magnitude are nowhere near the extreme capitulation levels seen in the 2018 bear market, March 2020 or May 2021.
What are the critical levels for Bitcoin?
According to experts, in case of negativity, Bitcoin 3 may experience a critical jump. In the short-term, it is emphasized that $36,000 must be held to avoid a major drop, as there are around $20 million in bid orders sitting at these levels. On higher timeframes, $29,000 stands as a major psychological price point. During the downtrend of 2021, BTC found support at these levels and losing them could trigger a bigger loss. Glassnode highlights another important level as follows:
Actual Price is currently $24.1k and is the average price of all the coins that were valued when they were last moved to the chain. Historically, this has been a very solid cycle support level and shows that the overall market is still holding an unrealized profit of 63 percent.
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