- Bitcoin price has plunged 55% from its November 2021 peak and 40% of BTC holders are currently underwater, based on data from Glassnode.
- The number of Bitcoin wallets falling in unrealized losses increased to 15.5% in April 2022.
- Analysts have called a bottom of $29,000 for Bitcoin price and predict a recovery within three months.
Bitcoin price recently plummeted after witnessing massive volatility and a bloodbath in the crypto market. There is a rise in the number of Bitcoin wallets that suffered unrealized losses and addresses underwater.
40% Bitcoin holders are underwater after recent price drop
Bitcoin price dropped 55% from its peak in November 2021. The drop in Bitcoin price has pushed several wallet addresses underwater. Underwater is a term used to describe addresses that hold assets that were purchased above the current price.
Based on data from Glassnode, 40% of Bitcoin holders are currently underwater, after the Bitcoin price slipped to $30,000. The asset has hit its lowest level in a year, and experts believe the risk-off approach of investors could trigger a further Bitcoin price drop.
Glassnode noted a massive influx of “urgent transactions” in the ongoing BTC sell-off, where investors have paid premiums to expedite transaction times. The total fees paid for on-chain transactions hit their highest point yet, at 3.07 BTC.
Analysts believe the dominance of on-chain transaction fees and the rising exchange deposits signal a growing sense of urgency amongst investors. $3.15 billion in Bitcoin has flown in and out of exchanges over the past week, hitting a new all-time high since the November 2021 peak.
A higher number of addresses underwater combined with urgency to sell and BTC inflow to exchanges implies a rise in selling pressure and downward squeeze on price.
Whale wallets with a balance of over 10,000 Bitcoins have witnessed a particular rise in the distribution of their BTC across the network. Retail investors with less than 1 BTC have emerged as the strongest holders, close to levels observed in February 2022.
Analysts at Fundstrat Global Advisors evaluated the Bitcoin price trend and called a bottom of around $29,000. Analysts believe Bitcoin price could witness a trend reversal within the next three months.
@crypto_noble, a crypto analyst and host of The Market Update, believes Bitcoin price could resume its uptrend if price crosses resistance at $32,500. However, failure to break past resistance could push BTC to $28,000.
$BTC #Gann
— Notorious Bill (@crypto_noble) May 11, 2022
5/11, 10am EST - $BTC hit Gann price-time point of 29.6k and $BTC did not crash first time down. So that’s at least some good news.
32.5k is a resistance point. If BTC gets above that, it could be over. If $BTC does not go above that, risk is a move to 28k #bitcoin pic.twitter.com/5gxcK2ipT1
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