Key Points
- Bitcoin [BTC] has struggled to maintain its position above the $60,000 price level, impacting short-term holders.
- A majority of Bitcoin holders remain profitable despite the recent price fluctuations.
Bitcoin [BTC] has been facing challenges in maintaining its position above the $60,000 price level.
This has particularly affected short-term Bitcoin holders, many of whom are now holding their assets at a loss.
Short Bitcoin Holders at a Loss
A recent report revealed that over 80% of short-term Bitcoin holders were holding their BTC at a loss.
This is due to Bitcoin’s struggle around the $60,000 price level.
Similar market conditions were observed in 2018, 2019, and mid-2021, leading to increased panic selling.
Analysis of the 30-day Market Value to Realized Value (MVRV) confirmed the challenges faced by short-term Bitcoin holders.
The MVRV has been below zero since the beginning of the month, indicating that most short-term holders were underwater.
Bitcoin Holders Remain Profitable Overall
Despite the struggles of short-term holders, the overall Bitcoin holder base reveals a more positive outlook.
Data shows that over 80% of all Bitcoin addresses were “in the money,” meaning they held BTC at a price higher than their purchase price.
Approximately 12.9% of the total were “out of the money,” meaning these holders were at a loss.
Despite recent price declines affecting short-term holders, the overall market is still largely in profit.
Bitcoin has seen a price increase of over 2%, pushing it to approximately $60,800.
The recent gains have brought Bitcoin closer to a critical resistance level around the $60,000 mark.
The next major resistance level lies at around $63,000. This level will be the next critical target for Bitcoin to reach as it continues its upward trend.
