Bitcoin addresses in profit fall below 50%

Bitcoin addresses in profit fall below 50%
Bitcoin addresses in profit fall below 50%

The price of bitcoin has fluctuated over the past week. Mainly, the price has grown, reaching one-month highs in the process. However, as the month of July draws to a close, bitcoin has started to lose the gains it has made over the past week. This has brought the proportion of owners who have a profit below 50%.

Only 47% in profit

Bitcoin holders have been one of the few digital assets that have managed to maintain profitability throughout the bear trend. Even when major cryptocurrencies saw the number of owners in profit fall below half, the pioneer cryptocurrency had kept more than half of all owners in profit. That is, until now, as the recent price crash has made things more difficult in the space.

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According to data from IntoTheBlock, the number of bitcoin holders in profit has taken a dive in the past couple of days. In total, 47% of all wallets are currently in surplus. Although the majority of owners are still in profit, it is by a small margin and is down more than 3% from where it was last week.

Bitcoin price chart from TradingView.com

BTC price falls to $21,800 | Source: BTCUSD on TradingView.com

This has also led to an increase in the number of nursing losses in the last couple of days. In total, 46% of all holders are currently in losses, while 6% are sitting in the neutral territory. For this 6%, they simply bought tokens at the price the digital asset is currently trending.

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Bitcoin turns bearish

It is important to note that the recent rise in the price of bitcoin has seen it mark a number of bullish indicators. However, as the crypto market tends to do, a drop in price has erased a good number of these bullish indicators.

The first is now the 5-day moving average. Not the most important indicator by any means, but it shows the buying behavior of investors in the very short term. Bitcoin’s run to $24,000 had sent the moving average higher, but with the rapid crash, investors have been extremely cautious as the price fell below the 5-day moving average at $22,865.

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Another important metric is the 50-day moving average. Bitcoin is now trending well below this, which is not a good sign for the next couple of weeks. However, it is also important to note that this can quickly change if the accumulation picks up.

Still, as bitcoin heads into the new week, there is clearly an ongoing war between the bears and the bulls for dominance. Since the weekend has been known to set the precedent for the new week, bitcoin’s performance may come as the opposite of what was recorded last week.

Featured image from Forbes, chart from TradingView.com

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