According to recent market and on-chain data provided by IntoTheBlock, 66 percent of the addresses that have purchased Bitcoin in the recent market movements are currently at a loss.
Traders and investors have bought more than 500,000 Bitcoins at the price of around $33,000. In addition to the current market situation, the indicator suggests that more than 3.5 million Bitcoin addresses are not enjoying profits at the moment.
The In/Out money around the price indicator is showing a number of addresses that are making and losing money on their position. By looking at the indicator, we can obtain a better idea of the buying/selling volumes at various values. Usually, when traders are losing money on the positions that they have recently opened, they are starting to look to break even rather than making profits. The entry point of their position becomes a strong resistance for the price because of the large amount of selling pressure.
Since there was a lot of buying power at the $33,000 level, that value might become strong resistance for the price to break through. By looking at the daily BTC/USD chart, we can easily see the correlation between on-chain data and the current market situation.
By press time, Bitcoin has tested the $32,900 value but failed to pass through. Currently, Bitcoin is consolidating in the range of $33,000 to $30,000. The last major Bitcoin move has led to a stressful $29,000 drop.
Dan Burgin
Yuri Molchan
