- The losing supply of Bitcoin increased to 68%, with 6.67 million Bitcoins underwater at the current spot price.
- In fact, the on-chain data shows that 2.71 million bitcoins fell in losses as the bitcoin price fell from a local high of $31k.
- With the sell-side risk ratio near an all-time low, Glassnode analyst James Chick says bitcoin could see a big move either side.
Bitcoin price is down about 14.6% since its rejection at the local high of $30.9K, with the result being a sharp rise in the total losing bid quantity.
The cryptocurrency spot is currently around $26.4K, after spending the week in a narrow range below the key resistance level of $27.6K. Although Bitcoin has retested levels above $28K several times this month, a dip below $27K has bulls staring at a potential drop to $25K support or below.
But even with those predictions coming true, some 2.71 million BTC has drifted underwater. View BTC is at a loss, according to the data subscriber Through the on-chain analytics platform Glassnode, it equates to around 14% of the benchmark circulating supply of cryptocurrencies.
“This brings the total supply in loss over the aforementioned period from 3.96 million to 6.67 million bitcoins, an increase of 68.4%.Note Glassnode.
$45,000 or $20,000? Analysts are pressuring Bitcoin’s price action
Earlier this week, Glassnode’s chief analyst, James Chick, said that bitcoin could see “significant movement” in the coming weeks amid seller exhaustion. Referring to string data, Check explained:
“The risk ratio on the short side of Bitcoin is near an all-time low. This indicates that investors are reluctant to spend coins that are at a profit or a loss within the current price range. This usually happens when the sellers are exhausted on both sides, which indicates that there are big moves coming. “
On Wednesday, Nikolaos Panigirzoglou, chief strategist at JPMorgan, said that bitcoin could rise by 25% in the next 12 months. In a note to clients, Panigirzoglu highlighted gold’s rally to a new multi-year high above $2K as a potential leader for Bitcoin to reach $45K.
According to the analyst, bitcoin and gold are often traded concurrently. The upcoming Bitcoin halving will also play a role in driving up the price of the digital asset. Recently, analysts at Standard Chartered predicted a 70% gain for the BTC price, with $100k as a target.