Bitcoin supply is down by the seven-day moving average, according to on-chain data from CryptoQuant, a blockchain analytics platform state at 32%, a nine-month low. This is the lowest level since April 2022, when Bitcoin’s price changed hands around $40,000.
Bitcoin stock down 32%
The Bitcoin supply in loss is a metric that measures the absolute number of coins currently in loss-making territory. This data compares the price at which the coin in question last moved and the spot rate. If the price is lower than the current price, the coin is lost.
The statistic does not quantify the magnitude of the loss. Instead, it indicates whether it is a profit or a loss without giving precise figures on the profitability or loss of each coin.
For traders, how the supply changes over time at a loss can be used to select price bottoms or tops. In particular, analytic platforms say that investors track the metric and use the metric to enter or exit the market in a timely manner. Historically, when supply in loss is in the 50-60% range, Bitcoin prices low point could be.
Currently, according to on-chain data, Bitcoin supply is down 32%, the lowest in nine months, and could indicate a trend reversal is imminent.
According to one analyst, citing on-chain data from CryptoQuant, prices capitulate every time Bitcoin supply rises above 50% at a loss. Peaks or peaks can be better timed by combining the supply in losses and the supply in profit lines.
The supply in profit tracker uses the same principle as its counterpart, supply in loss. However, it only takes into account the number of coins that have made a profit since the last time they were moved. They move in the opposite direction.
After prices fell to 2022 lows in November 2022, Bitcoin supply declined at a loss, while supply increased at a profit. Given the state of price action, when the two lines representing supply and loss intersect, analysts can easily identify the point of reversal. The last time the supply in loss exceeded the supply in profit was in March 2020 when Bitcoin prices surged upwards of $5,000.
61% of BTC holders are making a profit
With Bitcoin prices rising, most coin holders are making a profit. Parallel data from IntoTheBlock reveals that 61% of coin holders are in the money. Only 36% are in the red and only 3% break even.
Over the past few trading days, BTC prices have been consolidating within a channel and found resistance around the USD 23,300 and USD 23,800 zone.
Some traders call in tops. Meanwhile, sentiment data from IntoTheBlock indicates that traders are mostly neutral.
Feature image from Canva, chart from TradingView
