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

49.94% of total Bitcoin supply is now at some loss

As one analyst pointed out in a CryptoQuant post, the drop below $20k has now left almost 50% of the supply underwater.

“Supply losing percentage” is an indicator that measures how much of the total supply of Bitcoin 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 holding at some loss right now.

Related Reading | Bitcoin Long-Term Holders Now Own Nearly 80% of Realized Cap

On the other hand, if the coin last moved at a lower price than now, then the coin is in profit. The losing bid naturally only counts the previous type of coins.

Now, here is a chart showing the trend in the losing Bitcoin supply over the last few years:

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

As you can see from the chart above, Bitcoin’s supply loss percentage has increased in recent weeks as the price has plummeted.

The latest drop in the value of the crypto, which has now pushed it below the $20k level, has pushed a further amount of supply underwater.

Related Reading | Mike McGlone says that $20,000 is the new $5,000 for Bitcoin, but is he right?

Now, the total percentage of the offer in red has come very close to 50%. Historically, periods with an indicator value between 50% and 60% have been when the coin has seen bottoms before.

Because of this, the range can be ideal for accumulating Bitcoin. However, there may still be a long way to go to reach a real bottom, as the supply at loss has just hit the 50% mark.

During the last two lows, the metric value was at least 55%. If it now follows a similar pattern as well, then the crypto may have potential for a further downtrend before the bottom is finally reached.

BTC price

At the time of writing, the price of Bitcoin is hovering around $19,200, down 33% in the last seven days. Over the last month, the crypto has lost 37% in value.

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

The value of the crypto seems to have plummeted over the last day | Source: BTCUSD on TradingView Featured Image from Unsplash.com, Charts from TradingView.com, CryptoQuant.com



This post Losing Bitcoin Supply Hits 50% as BTC Drops Below $20k

was published first on https://www.newsbtc.com/news/bitcoin/bitcoin-supply-loss-50-btc-drops-below-20k/

Author

Write A Comment