Bitcoin price drawdown sends 20% of circulating supply underwater
|- Bitcoin short-term holder supply declined by 1.4 million as traders shed holdings on exchanges.
- The recent drawdown in price has pushed over 3 million BTC, 20% of the supply underwater.
- Analysts have evaluated the Bitcoin price trend and await confirmation of a bull trend.
Nearly 20% of Bitcoin's total circulating supply is held at a loss, equivalent to 3.48 million BTC. Despite Bitcoin’s mining hash rate recovering and a spike in open interest, analysts are awaiting confirmation of an uptrend.
Short-term Bitcoin holders shed their holdings in recent drawdown
Analysts at crypto intelligence firm Glassnode have noted a drop in Bitcoin's short-term holdings.
Short-term holder supply has plunged by 1.4 million in a 25% drawdown. This indicates a spike in the supply of Bitcoin sold on exchanges.
Historically, a declining short-term holder supply is indicative of a Bitcoin price drop. Further, the recent drop in price has pushed over 3 million Bitcoins underwater, implying these assets were bought at a price higher than the current level.
As Bitcoin price dropped from its all-time high, a large proportion of the supply went into unrealized losses. Bitcoins have been spent and redistributed, while nearly 20% of the circulating supply remains underwater.
Further, a large volume of Bitcoin, over 2.2 million, has changed hands between $45,000 and $50,000 based on data from Glassnode. @LadyofCrypto1, a cryptocurrency analyst and trader, believes that two bullish Bitcoin scenarios could confirm the formation of a bull trend.
Bitcoin price has minor support at $49,400, and losing this leaves the asset with the next support at $47,800. The analyst believes that the support will hold and confirm a bull trend.
Two bullish $BTC scenarios that'll confirm a bull trend is forming.#Bitcoin is on the minor 49.4k support. Minor support is strong in the face of weak bears. This is the ideal scenario.
— Lady of Crypto (@LadyofCrypto1) December 28, 2021
Losing 49.4k leaves us with minor support at 47.8k. I'll look for this to hold. pic.twitter.com/Gh9aszkImt
Two bullish $BTC scenarios that'll confirm a bull trend is forming.#Bitcoin is on the minor 49.4k support. Minor support is strong in the face of weak bears. This is the ideal scenario.
— Lady of Crypto (@LadyofCrypto1) December 28, 2021
Losing 49.4k leaves us with minor support at 47.8k. I'll look for this to hold. pic.twitter.com/Gh9aszkImt
FXStreet analysts have predicted that Bitcoin price could retest $50,000.
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