Bitcoin supply at a loss reaches 50% while BTC is below $20k. drops


On-chain data shows that the percentage of Bitcoin supply has risen at a loss to nearly 50% as the price of the crypto dips below $20k.

49.94% of Bitcoin’s total supply is now holding some loss

As noted by an analyst in a CryptoQuant afterthe drop below $20k has now flooded nearly 50% of the supply.

The “percent supply in loss” is an indicator that measures what proportion of the total Bitcoin supply is currently in the red.

The metric works by checking the transfer history of each coin on the chain to see what price it last moved at.

If the previous selling price of a coin was higher than the current BTC price, then that particular coin is currently being held with some loss.

Related literature | Long-term Bitcoin Holders Now Own Nearly 80% of Realized Cap

On the other hand, if the coin was last moved at a lower price than it is now, then the coin is in profit instead. Of course, the offer in loss only counts for the first type of coins.

Here is a chart showing the trend in Bitcoin’s loss in recent years:

It seems that the value of the indicator has recently increased | Source: CryptoQuant

As you can see in the chart above, the percentage of Bitcoin stock at a loss has been increasing in recent weeks as the price has gone down.

The cryptocurrency’s latest fall in value, which has now brought it below the $20k level, has pushed a further amount of supply under water.

Related literature | Mike McGlone Says $20,000 Is The New $5,000 For Bitcoin, But Is He Right?

Now the total percentage of the supply in the red has reached almost 50%. Historically, periods worth of the indicator have been between 50% and 60% when the currency has seen bottoms before.

This makes the range ideal for collecting Bitcoin. However, there may still be a long way to go for a real bottom as the supply at a loss has only now reached the 50% mark.

During the last two bottoms, the value of the metric was at least 55%. Now if a similar pattern also follows, the crypto may have potential for a more downtrend before finally hitting the bottom.

BTC price

At the time of writing, Bitcoin’s price is hovering around $19.2k, down 33% over the past seven days. Over the past month, the crypto has fallen 37% in value.

The chart below shows the trend in the price of the coin over the past five days.

The value of the crypto seems to have fallen in the past day | Source: BTCUSD on TradingView
Featured image from Unsplash.com, Charts from TradingView.com, CryptoQuant.com

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