A significant portion of the Bitcoin supply was sold at a higher price than the currently traded BTC price. This could be a bearish indicator for the biggest cryptocurrency, according to analytics firm Glassnode. Cryptocoin. com, we have compiled the details for you, let’s examine the subject together…
Glassnode warns: Bitcoin (BTC) can flow to the market!
Bitcoin is trading at $57,200 at the time of writing, down about 4.5% from where it was priced a week ago. BTC is also down about 17% from its all-time high of $69,044.77, which it reached about two weeks ago.
Glassnode states that BTC investors who are at a loss can dump their holdings on the market. Glassnode adds the following to its explanations on the subject:
If the price fails to retrace higher levels in a reasonable time frame, 15% of the underwater supply is historically enough to generate a bearish price action.
Source: GlassnodeFirm also analyzes UTXO and UPRD metric
The firm also analyzes the UTXO and UPRD metric. Glassnode adds the following to its explanations on the subject:
The UTXO Actual Price Breakdown (URPD) shows at what prices the current Bitcoin UTXO set was created, meaning each bar shows the current amount of BTC that last moved within the specified price range. There are several clusters of cryptocurrencies at key levels throughout 2021, the largest of which is 1.9 million BTC moving between $60,000 and $68k. This overall supply could provide resistance in the coming weeks if holders at a loss try to cut their losses.
Source: Glassnode
