Bitcoin price drawdown sends 20% of circulating supply underwater

Nearly 20% of Bitcoin's total circulating supply is held at a loss, equivalent to 3.48 million BTC. Despite Bitcoin’s mining hash rate recovering and a spike in open interest, analysts are awaiting confirmation of an uptrend. 

Short-term Bitcoin holders shed their holdings in recent drawdown

Analysts at crypto intelligence firm Glassnode have noted a drop in Bitcoin's short-term holdings. 

Short-term holder supply has plunged by 1.4 million in a 25% drawdown. This indicates a spike in the supply of Bitcoin sold on exchanges. 

Historically, a declining short-term holder supply is indicative of a Bitcoin price drop. Further, the recent drop in price has pushed over 3 million Bitcoins underwater, implying these assets were bought at a price higher than the current level. 

As Bitcoin price dropped from its all-time high, a large proportion of the supply went into unrealized losses. Bitcoins have been spent and redistributed, while nearly 20% of the circulating supply remains underwater.

Further, a large volume of Bitcoin, over 2.2 million, has changed hands between $45,000 and $50,000 based on data from Glassnode. @LadyofCrypto1, a cryptocurrency analyst and trader, believes that two bullish Bitcoin scenarios could confirm the formation of a bull trend. 

Bitcoin price has minor support at $49,400, and losing this leaves the asset with the next support at $47,800. The analyst believes that the support will hold and confirm a bull trend. 

FXStreet analysts have predicted that Bitcoin price could retest $50,000.