Bitcoin Supply In Loss Now At Similar Levels To COVID Crash And 2018 Bottom
11 November 2022 - 6:00AM
NEWSBTC
On-chain data shows the amount of Bitcoin supply in loss has now
reached levels similar to during the COVID crash and the 2018 bear
market bottom. Bitcoin Supply In Loss Spikes Up Following The
Latest Crash As pointed out by an analyst in a CryptoQuant post,
the BTC supply in loss has set a new record for this year following
the FTX disaster. The “supply in loss” is an indicator that
measures the total amount of Bitcoin that’s currently being held at
some loss. This metric works by looking at the on-chain history of
each coin in the circulating supply to see what price it was last
moved at. Related Reading: Bitcoin On-Chain Data: Selling From
Whales Holding 1k+ BTC Behind Crash If this previous price for any
coin was more than the current BTC value, then that particular coin
is in some unrealized loss right now, and the indicator accounts
for it. Now, here is a chart that shows the trend in the 7-day
moving average Bitcoin supply in loss over the history of the
crypto: The 7-day MA value of the metric seems to have been pretty
high in recent days | Source: CryptoQuant As you can see in the
above graph, the Bitcoin supply in loss has sharply risen up over
the last couple of days as the price of the crypto has observed a
deep crash. The current loss value is a new record for the 2022
bear market, and is also in fact the highest the indicator has been
since the COVID black swan event back in 2020. Notably, the amount
of underwater supply in the market was also at similar levels back
in late 2018, when the bear market of that cycle set its bottom.
Related Reading: Bitcoin Bear Markets Compared: How Much Longer
Till The Bottom? | BTCUSD November 9, 2022 If the same trend as in
those previous bottoms follows now as well, then the latest high
loss values may imply the market has now declined deep enough for a
bottom. However, even if the pattern does follow, it doesn’t mean
pain might be over for the investors. As is apparent from the
chart, in the 2018-19 bear the market moved mostly sideways after
the bottom, and also formed another peak of similar loss values,
before some bullish wind returned to Bitcoin. BTC Price At the time
of writing, Bitcoin’s price floats around $16.4k, down 18% in the
last week. Over the past month, the crypto has lost 15% in value.
The below chart shows the trend in the price of the coin over the
last five days. Looks like the value of the crypto has recovered a
bit since the crash below $16k | Source: BTCUSD on TradingView
Featured image from Jonathan Borba on Unsplash.com, charts from
TradingView.com, CryptoQuant.com
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