Glassnode reports that bitcoin is meeting resistance at $21,000 as investors report losses of more than $7 billion.

Date:

- Advertisement -

According to statistics provided by analytics firm Glassnode, investors closed out bitcoin (BTC) holdings totaling a record $7.3 billion during the past several days, resulting in the largest losses measured in terms of U.S. dollars sustained by the commodity over its entire existence.

Glassnode stated the term “realised loss” refers to the entire loss, as measured in U.S. dollar value, of all coins that have been moved and had a price at their previous movement that was higher than the price at their current movement.

You can use the tool to determine how many coins were moved at a given price using the data that it provides.

According to the company, there have been transactions involving around 555,000 BTC at values ranging from $18,000 to $23,000 for the asset over the previous several days.

These prices represent a significant support and resistance level respectively for the commodity. The daily losses totaled anywhere between $1.5 and $2 billion, according to the available data.

According to the data, long-term holders, who are defined as those who have held Bitcoin for a period longer than 155 days, liquidated nearly 178,000 BTC at prices lower than $23,000.

However, in terms of the total holdings, these liquidations only amounted to 1.31 percent of the total. From the data included on the blockchain, some of these individuals purchased their coins while the price of bitcoin was at its all-time high of $69,000.

They later sold their coins for $18,000, resulting in a loss of approximately 75 percent, as stated by Glassnode.

It’s possible that liquidations of this kind were a factor in bitcoin’s price dropping below $20,000 over the weekend.

As was previously reported, the price of a single Bitcoin dropped to as low as $18,319, while its market capitalization dropped to over $350 billion, representing a 73 percent loss from its all-time high in November.

After a relief surge that added around $2,000 to prices over the past 24 hours, the price of bitcoin ran into resistance on Monday morning near the level of $21,000.

According to the price charts, the level of $21,000 has served as support during the past few weeks.

Over the course of the last three days, bitcoin futures on larger futures exchanges saw a total liquidation volume of approximately $436 million.

According to data provided the majority of these losses were incurred via long options, sometimes known as wagers on increased prices.

The move came about as a result of a sharp decline in the price of bitcoin during the previous week, which coincided with a general decline in the equity market.

This occurred because inflation exceeded analyst expectations, and the United States Federal Reserve (Fed) raised interest rates by 75 basis points, which was the highest rate increase in the past 28 years.

In the meantime, researchers at Glassnode stated that data at currently available price levels indicated a market bottom.

In a tweet, the company claimed, “We can see that when prices hit the $17,000 lows, barely 49 percent of the $BTC supply was in profit,” citing its Percent Supply in Profit tool.

“We can see that as prices hit the $17,000 lows,” the company said.

On the other hand, traders continue to exercise extreme caution, with some claiming that before crypto markets can find a bottom, macroeconomic conditions need to show signs of improvement and the Federal Reserve should tone down its aggressive approach to monetary policy.

Also Read:

- Advertisement -
Mufasa
Mufasa
Mufasa is the lead writer at CryptoMufasa who likes to share all the latest info on the crypto world with you! Mufasa Enjoys enjoys a good read and recommendations so don't forget to comment on the posts and let him know.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More like this
Related

Kraken Settles With The SEC And Is Fined $362k For Violating U.S Sanctions on Iran

Kraken voluntarily agreed to pay a fine after the...

OKX released a proof-of-reserves page, offering instructions on how to self-audit its reserves

Cryptocurrency exchange OKX has released a proof-of-reserves page allowing...

500 million Whatsapp numbers are being auctioned off by Dark Web hackers

As hackers are selling as most updated mobile phone...

UK bank Starling restricts crypto-related purchases

Starling has banned customers from purchasing digital currencies with...