Bitcoin addresses in losses hit 1-month high as BTC price retests $21K
Covered:
- Bitcoin Address Hits 1 Month High
Bitcoin Address Hits 1 Month High
Bitcoin (BTC) hodlers are feeling the pressure this week as repeated tests of lower levels yield mounting losses.
Data from the chain analysis company Glassnode shows more wallets are in the red as of August 23rd than at any time in the past month.
Over 17.5 million wallets in the red
BTC/USD has seen five trips below $21,000 since the end of August 19, data from Cointelegraph Markets Pro and TradingView show, and the search for support is already making many traders nervous.
Meanwhile, those who have bought in recent weeks are under water to varying degrees, as Bitcoin is at its lowest since the last week of July.
The extent to which investors added or created positions on the way to this month’s $25,200 highs is now becoming clearer – more BTC addresses have a combined loss than at any time since July 23.
The increase in underwater addresses has been particularly marked since last week’s sudden price drop. At the time of writing, the seven-day moving average (MA) of wallets in the red is at more than 17.5 million – an increase of 1.5 million over several days.
Additional statistics from monitoring resource Coinglass covering liquidations of positions on derivatives exchanges, meanwhile, point to the vast majority of the pain being inflicted on August 1, with subsequent price moves above the $21,000 mark of little consequence.
Aug. 19 sealed a total of $209.5 million in liquidations of long positions on exchanges — the most since June 13 — along with $30 million in short positions.
Dollar rises to pressure outlook
As for the immediate outlook, few were prepared to bet on a major renaissance in the crypto markets.
Popular trader and analyst Rekt Capital highlighted Bitcoin’s first close below the key 200-week MA since July, and others noted risk assets faced resistance while the US dollar broke higher.
#SPX500 lost the 50-week moving average last week, and on the first day of this week has lost the 100-week moving average and the microtrend line.
What do you think will come next?
Trend Precognition has some clues highlighted in red. pic.twitter.com/W7wUkt4UBY
— Keith Alan (@KAProductions) 22 August 2022
The US dollar index (DXY), with which Bitcoin has shown inverse correlation to varying degrees in recent years, hit its highest since July 14, passing 109 and up 4.4% from its August low.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should do your own research when making a decision.
*This article originally appeared in Cointelegraph.
