Evaluating about Bitcoin [BTC] can see a leg down to the $9k mark
Bitcoins [BTC] struggling to surpass the current resistance level (around $21k) continues to see new dates. BTC made some attempts to clear the $21,650 resistance but failed. However, there could be more pain to come for the biggest crypto.
Pain and suffering
The safety of pain does not end in the shorter frame and this can be attributed to the factors given below.
First, BTC seems to be losing its dominance as traders showed more interest in Ethereum [ETH] and other altcoins. The king coin briefly fell back above $25k on August 14th. After this, BTC recorded a low transaction ratio with losses. Mainly because traders lost interest and left the network.
According to research firm Santiment, there were more than twice as many BTC transactions with losses compared to profits this week. Which can be seen in the graph below.
Source: Sentiment
Even the NUPL calculation fell below zero during the first half of the day. This could be a sign that the crypto may be approaching a bottom. That means the Bitcoin market as a whole had an unrealized loss.
Well, Bitcoin’s “net unrealized profit and loss” (NUPL) is an indicator that can be defined as the difference between the market value and the realized value, divided by the market value.
Source: Glassnode
In particular, Bitcoin NUPL fell sharply in value this year (YTD) as the price of the crypto observed a decline. But at press time, BTC saw a small uptick above the zero mark. Thus signaling “Hope” in the midst of fear.
But is it significant enough to keep the token afloat? Perhaps not when bears took control, evident from CoinGlass’ data.
Source: CoinGlass
Also, Bitcoin’s steep correction failed to break the $25,000 resistance on August 15.
This surprised even the BTC bulls because only 12% of the call options for the monthly expiration were placed above $22,000.
Thus, Bitcoin bears were better positioned even though they bet fewer. (BTC at press time was trading <$22k mark).
Winter coming?
Various analysts in the crypto market have predicted the arrival of crypto winter. Peter Schiff, one of Bitcoin’s biggest critics, predicted that the reference cryptocurrency was on the verge of more blood wear.
Another chain analyst (@Root) claimed that BTC could witness a big leg down to 9k in one thread.
“#Bitcoin ready for major leg down to 9k 😱”
I’ve seen this chart going around, time to discuss some misconceptions 🧵👇 pic.twitter.com/3LUe6FAXJT
— Root 🥕 (@therationalroot) 23 August 2022
