Since Bitcoin (BTC) switched from an all-time high (ATH) price of $ 64.8 thousand, recorded in mid-April, 6.2 million coins have been considered unprofitable, representing 33% of supply.

Market analyst Lark Davis explained:

“According to Glassnode, an incredible 6.2 million bitcoins are sitting in a situation of unrealized losses right now.”

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An unrealized loss is a decrease in the value of an asset that has not yet been sold. Therefore, investors still keep BTC 6.2 million cheaper than they bought.

Low volatility has been one of the primary factors preventing Bitcoin from returning to its ATH level once institutional investment has dried up. In addition enhanced suppression BTC mining by the Chinese authorities has had a negative impact on this market.

However, a recent Fidelity study showed that 70% of institutional investors continued to look at the cryptographic market in the future, which offers hope for a leading cryptocurrency.

Changes in Bitcoin’s illiquid deliveries show more accumulation

Davis too taken into account that the change in BTC’s illiquid supply strongly indicated that investors were accumulating.

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Therefore, Bitcoin lies at a critical level of support, as 10.5% of its offering traded between $ 31K and $ 34K.

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If this level is lost, the top cryptocurrency can be sold as a panic that ends in a cascading effect because more panic sellers can be created.

Bitcoin will collapse?

BTC has dropped below the psychological price of $ 30,000 on Tuesday, July 20, for the second time since mid-May. The entire secret market found itself at the receiving end as nearly $ 98 billion was lost.

However, some analysts are convinced that is not surprising. Ulrik K.Lykke, CEO of Crypto / Digital Assets Hedge Fund ARK36, said:

“The decline below the $ 30,000 level is not surprising or too worrying, as BTC has been trading at the $ 30-34,000 level for more than 8 weeks and is struggling to get support above this hurdle. Under such market conditions, some investors may grow a little uneasy, especially when Bitcoin and the general digital asset market is facing increased regulatory oversight.

Still, Bitcoin had rebounded somewhat over the past 24 hours, rising 3.36% to above $ 30,816 during intraday trading. CoinMarketCap.

Ruud Feltkamp, ​​CEO of Automated Trading Platform Cryptohopper, I saidIt would be interesting to see if the rebound can support and maintain its strength. If it re-tests the aid, “it is unlikely to see such a recovery and will have to sell for $ 23,000.”

“As expected, Bitcoin bounced back when it dropped below $ 30,000. The $ 30,000 support is so strong that falling below this almost magical threshold would almost always amount to a bounce.”

Image source: Shutterstock

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