Bitcoin Supply In Profit Sees Sharp Decline With Market Crash – Here Are The Numbers

The Bitcoin supply in profit has seen a sharp decline amid the latest crypto market ￰0￱ has raised concerns that BTC could suffer a further crash, as holders who are in the red may move to offload their ￰1￱ Supply In Profit Drops Amid Market Crash On-chain analytics platform Glassnode revealed in a report that the Bitcoin supply in profit has historically dropped to around 85%, with 15% of the supply sitting at a ￰2￱ has occurred whenever the BTC price breaks down from a new all-time high (ATH) and trades around the short-term holders’ cost basis, as is happening ￰3￱ Reading: Is The Bitcoin Supercycle Still In Play? Wave 3 Tells A Story Of A Surge Glassnode noted that this marks a pivotal phase for Bitcoin, as this is where the market tests the conviction of investors who had bought near recent ￰4￱ pattern is said to be playing out for the third time in this current ￰5￱ on-chain analytics platform warned that if BTC fails to recover above the $113,100 range, a deeper contraction could send a larger share of the Bitcoin supply into ￰6￱ further stated that this deeper contraction could amplify the stress among recent Bitcoin buyers, which could set the stage for a broader capitulation across the ￰7￱ platform also alluded to the Supply Quantile Cost Basis to explain why it is essential for BTC to reclaim the short-term holders’ cost basis above $113,000.

Bitcoin is said to be struggling to hold above the 0.85 quantile at $108,600. Failure to hold this has historically indicated structural market weakness and often preceded deeper corrections toward the 0.75 quantile, which now aligns near $97,500. This puts BTC at risk of dropping below $100,000 for the first time since May. A Longer Consolidation Phase May Be Necessary Glassnode stated that from a macro perspective, the repeated demand exhaustion suggests that Bitcoin may require a longer consolidation phase to rebuild ￰8￱ exhaustion is said to be clearer with the Long-Term Holder Spend ￰9￱ long-term holders have increased their spending with the 30D-SMA rising from the 10,000 BTC baseline to over 22,000 BTC daily since the market peak in ￰10￱ Reading: Is Bitcoin About To See A Repeat Of 2020-2021?

What Happened After The Last Flash Crash Glassnode noted that such persistent distribution indicates profit-taking from seasoned investors, which has contributed to the current Bitcoin ￰11￱ OGs have continued to offload their coins at an unprecedented rate, putting significant selling pressure on ￰12￱ Lens recently revealed that a particular whale moved 3,003 BTC to Binance, likely in a bid to sell, while also shorting BTC with a position worth $227 ￰13￱ the time of writing, the Bitcoin price is trading at around $108,800, up in the last 24 hours, according to data from ￰14￱ image from Pixabay, chart from ￰15￱