After moving sideways over the weekend, Bitcoin took a further turn towards the negative at the time this article was written. NewsBTC covered the Bitcoin market over the weekend. It lost support around $40,000 and appears to be continuing its downward trend.
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Bitcoin trades at $38,118, with a loss of 2.6% in the last 24 hours.
A recent Glassnode Insights Report shows that Bitcoin has entered a delicate balance. Buyers are trying to take on bears as the benchmark cryptocurrency falls back towards its yearly lows.
However, as the report claims, selling pressure has been “persistent” as speculator dump their BTC, probably due to the current macro-economic environment. The status quo was maintained for more than two months as investors who are short-term jumped out of the market.
If bulls lose momentum or sellers reach exhaustion, this new normal may end. Glassnode Insights was added.
A relative equilibrium was established with prices moving sideways over recent weeks. However, due to limited new demand, the delicate balance could be upset by either seller exhaustion (or, conversely, a resurgence of sellers).
In the chart below, it is easier to visualize the above with an equilibrium created in the amount of Bitcoin held in crypto exchange platform as BTC’s price moves sideways. This metric has trend to the downside since March 2020, after the event called “Black Thursday”.
A report states that 15% of speculators are still unrealized losses. These investors purchased at an average price of $46,400 and are now at loss compared to long-term holders who have an average of $39,000. Glassnode said:
Non-trivial daily loss have been sustained for more than two months. That is approximately 0.5% per day. While these losses are significant, they’re not as severe as those experienced in March 2020’s 2018 bear market or May 2021’s extreme capitulation.
This is the most critical level for Bitcoin
Bitcoin may experience a rebound at three critical levels in the event of a future downturn. The short-term, the $36,000 level should be sufficient to avoid a significant drawdown. There are approximately $20 million worth of bids orders at these levels.
Material Indicators’ data indicates that the support for this sector has grown over recent days. The $15 million additional bids orders, which are approximately $35,000 each, provides an additional level of protection from selling pressure. It remains to be determined if these levels hold.
| Bitcoin drops below $39,000 as crypto markets tank over the weekend
The psychological price point of $29,000 is a significant one in longer time frames. During 2021’s downtrend, BTC found support at those levels, and losing them could trigger further losses. Glassnode highlights a second important level.
The current real price is $24.1k. This is the average value of all coins at their last move on-chain. This has historically been an extremely sound support level for the cycle and indicates that the aggregate market still holds a profit of 63%.