Bitcoin: 50% BTC Supply Underwater? RSI Hits New Lows - What's Next?
Is Bitcoin nearing a bottom? Concerns are rising as on-chain data reveals a significant portion of the Bitcoin supply is now held at a loss. Reports indicate that almost 50% of the Bitcoin supply is underwater, a level often associated with market capitulation. Combine this with the fact that Bitcoin's RSI (Relative Strength Index) is hitting new lows, and the question on every investor's mind is: where is Bitcoin headed?
The Bitcoin Supply in Loss: A Key Indicator
One very simple metric to watch is the Bitcoin Supply in Loss. This metric has historically very well predicted roughly the area for the macro-bottom. But what does it actually measure? It looks at the number of coins bought at a higher price than the current market value.
Hace 5 días Bitcoin Rally Pauses Below $110,000 as Bulls Retreat. Bitcoin price rallied to $109,400 on Sunday before pulling back to $108,000, pausing below the critical $110,000. While this recent pullback from near all-time highs might seem alarming, understanding the percentage of the Bitcoin supply in loss is crucial for gauging market sentiment. On-chain data shows the percentage of the Bitcoin supply in loss has surged to almost 50% now as the crypto’s price tumbles below $20k. As pointed out by an analyst in a CryptoQuant post.
Is This a Buying Opportunity?
Historically, periods when a large percentage of the Bitcoin supply is held at a loss have presented significant buying opportunities. When investors are underwater, selling pressure increases, potentially driving the price down to its true bottom. Hace 20 horas The cryptocurrency market is clawing back gains on Friday as Bitcoin (BTC) takes a breather from near all-time-high levels, reflecting mixed sentiment surrounding tariffs in. This mixed sentiment, coupled with a high supply in loss, creates a volatile market environment that skilled investors can potentially capitalize on.
Expert Analysis: 4.4 Million BTC Now in Loss
Top analyst Axel Adler shared insights on X, revealing that currently, 4.4 million BTC from the total supply have moved into a loss. This metric represents the number of coins bought and are now worth less than their purchase price. This underscores the significant amount of capital currently tied up in losing Bitcoin positions.
Interpreting Current Low Supply in Loss Data
It's important to note that fluctuations occur. Consider these observations: Current Observations: - Current Low Supply in Loss (%): At 16.31%, a relatively small portion of Bitcoin supply is at a loss. Historically, such levels suggest that most investors are in profit. However, the recent surge towards 50% warrants close attention.
Bitcoin RSI at New Lows: Confirmation or False Signal?
Adding to the complexity, Bitcoin's RSI is currently hitting new lows. The RSI is a momentum indicator used to identify overbought or oversold conditions. When the RSI falls to extremely low levels, it often signals that Bitcoin is oversold and due for a rebound. However, it can also indicate continued bearish momentum. Combining the RSI with the supply in loss data can provide a more comprehensive picture of the market.
Conclusion: Navigating the Current Bitcoin Market
The confluence of a large Bitcoin supply being held at a loss and a low RSI presents a complex scenario. While it may signal an impending bottom, it's essential to conduct thorough research and consider your own risk tolerance before making any investment decisions. Keep a close eye on on-chain data, market trends, and expert analysis to navigate this volatile market effectively.