70% Of Bitcoin Supply Is In Profit – Why Bulls Need To Defend This Level

2022-1-19 22:00

On-chain data shows about 70% of the total Bitcoin supply is currently in profit, a level that has historically been important for bulls.

Around 30% Of Total Bitcoin Supply Is Now Underwater

As per the latest weekly report from Glassnode, the percentage of BTC supply in profit has now fallen off to just 70%.

The “percent of supply in profit” is an indicator that measures the percentage of the total Bitcoin supply that’s currently in the green.

When the value of this metric increases, it means more coins have started to get into profit. This leads to holders becoming more probable to sell their coins in order to harvest their gains.

At very high values of the indicator (more than 95%), the price of Bitcoin has usually approached a top as profits are realized.

On the other hand, when the metric moves down, it means more coins are entering into the red. Below certain low levels, investors may capitulate to cut their losses. However, when more than 50% of the supply is underwater, bottoms have historically formed.

Related Reading | Green Energy: In NY, Bitcoin Mining Saved The Oldest Working Hydroelectric Plant

Now, here is a chart that shows the trend in the value of the Bitcoin supply in profit over the last couple of years:

Looks like the value of the indicator has declined recently | Source: The Glassnode Week Onchain - Week 3, 2022

As you can see in the above graph, the metric has been falling down since a few months now. And so at the moment, only around 70% of the Bitcoin supply is in profit.

Related Reading | Bitcoin Miners Show Strong Accumulation As Their Inventories Spike Up

The 70% level seems to have been significant historically as bulls had to defend it twice in the past two years. The first instance was shortly after the COVID crash, between May 2020 to July 2020.

The other instance was 2021’s mini-bear period between May and July. The bulls came out on top during both the periods after a while of sideways movement.

The report notes that the medium-term outlook of the price likely depends on how the market responds to the level this time. If more of the supply enters underwater, those in the red may finally capitulate.

On the other hand, a bullish reversal can bring more Bitcoin into profit and prevent these holders from selling here.

BTC Price

At the time of writing, Bitcoin’s price floats around $42k, up 0.5% in the last seven days. Over the past month, the crypto has lost 8% in value.

The below chart shows the trend in the price of BTC over the last five days.

BTC's price has once again stumbled down in the past few days | Source: BTCUSD on TradingView Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Supply Shock (M1) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Доступно / Всего 0 M1

supply profit bitcoin total level bulls latest

Источник: newsbtc.com

supply profit → Результатов: 52


User Pays $2.6 Million to Transfer Just $130 Worth of ETH; By Far the Highest Fees Ever Paid

After climbing above $240, the second-largest cryptocurrency has slowed down and is keeping around this level. The percent of Ether supply in profit, which is the percentage of calculating ETH whose price at the last time it moved on-chain was lower than the current price, is currently hovering at 80%. It is the third attempt […]

2020-6-11 17:56


NeuralTrade Network ICO

Most people are desperately seeking financial freedom in their life. Sadly financial freedom remains a dream to them or an elusive theory that forever escapes them. The biggest problem around financial freedom is some magic formula or some secret success model that they believe exists, they spend an endless amount of time, effort and even resources in obtaining this magic formula or the secret success model.

2019-2-15 22:51


AIDUS ICO

The AIDUS Global D-Fund Platform is a decentralized fund market established upon the ETHEREUM network to serve as a professional asset management platform in which global investors and asset management companies are able to use Blockchain technologies and SMART Contracts to safely and transparently create and settle into P2P (Peer-to-Peer) fund agreements.

2018-11-28 14:34


Фото:

A Bug Making Ethereum Transactions on Exchanges Vulnerable Has Been Fixed

A bug centering around a new Ethereum token, GasToken, which was enabling abuse on cryptocurrency exchanges, appears to have been resolved. The details are provided in a report originally published on November 13, 2018, that discussed how the bug was exploited by attackers, and what digital platforms could do if they wished to protect their hot wallet funds.

2018-11-22 00:34


China's Central Bank Wants to Put the Damper Airdrops: Report

The People's Bank of China (PBoC), China's central bank, has its eyes on cryptocurrency companies that run airdrop campaigns in the country. In its most recent financial stability report for 2018, which was published on Friday, November 3, 2018, the bank said there has been a surge in the number of "disguised" Initial Coin Offerings (ICO), including the free distribution of crypto tokens through airdrops, despite its effort to clamp down on their activities.

2018-11-5 22:04


China's Central Bank Wants to Put the Damper on Airdrops: Report

The People's Bank of China (PBoC), China's central bank, has its eyes on cryptocurrency companies that run airdrop campaigns in the country. In its most recent financial stability report for 2018, which was published on Friday, November 3, 2018, the bank said there has been a surge in the number of "disguised" Initial Coin Offerings (ICO), including the free distribution of crypto tokens through airdrops, despite its effort to clamp down on their activities.

2018-11-7 22:04


Notes on Blockchain Governance

In which I argue that “tightly coupled” on-chain voting is overrated, the status quo of “informal governance” as practiced by Bitcoin, Bitcoin Cash, Ethereum, Zcash and similar systems is much less bad than commonly thought, that people who think that the purpose of blockchains is to completely expunge soft mushy human intuitions and feelings in favor of completely algorithmic governance (emphasis on “completely”) are absolutely crazy, and loosely coupled voting as done by Carbonvotes and similar systems is underrated, as well as describe what framework should be used when thinking about blockchain governance in the first place.

2018-7-21 23:03


дальше еще 3 новостей →

Партнеры Currencies.ru

Реклама на Currencies.ru

Самое свежее на Currencies.ru

Bitcoin Deja Vu: Indicator Mirrors Pattern That Led To 2021 Top

On-chain data suggests a Bitcoin indicator is currently mirroring the same trend that led to the top of the bull run in 2021. Bitcoin Long-Term Holder Distribution Appears To Be Ending As explained by CryptoQuant community manager Maartunn in a post on X, the BTC long-term holders are currently showcasing a trend that’s reminiscent of […]

Bitcoin HODLer Profit-Taking Calms Down After Wild Selling Spree: Green Sign For Rally?

On-chain data shows the Bitcoin long-term holders have finally cooled off their profit-taking after showing a wild selloff just earlier. Bitcoin Coin Days Destroyed Has Calmed Down For BTC Recently As pointed out by BTC on-chain research account “The Bitcoin Researcher” in a post on X, the Coin Days Destroyed In Profit metric has declined […]

Bitcoin Supply Shock: Exchange Inflow Trend Lowest Since 2015

On-chain data shows the Bitcoin exchange inflow trend has been at its lowest in almost a decade recently, a sign that may be bullish for the asset. Bitcoin Exchange Inflows Have Been On The Decline Recently As pointed out by CryptoQuant author Axel Adler Jr in a post on X, the BTC exchange inflows have […]

Bitcoin To Reach Escape Velocity? Analyst Makes The Case

An analyst has explained how Bitcoin seems to be showing a good setup to reach escape velocity based on the trend in this indicator. Bitcoin VWAP Oscillator Has Been Showing A Bullish Divergence As explained by analyst Willy Woo in a new post on X, a bullish divergence has appeared to be forming in the Volume-Weighted Average Price (VWAP) oscillator of the cryptocurrency.

Bitcoin Greed No More: Sentiment Back At Neutral After $57,000 Plunge

Data shows that Bitcoin sentiment has cooled off to neutral from greed following the asset’s latest plunge to the $57,000 level. Bitcoin Fear & Greed Index Has Returned To Neutral Levels The “Fear & Greed Index” is an indicator created by Alternative that shows the average sentiment among investors in the Bitcoin and wider cryptocurrency market.