• Bitcoin’s value has recently experienced a significant decrease, dropping below the $29.5K threshold after a bullish breakout.
• Data from Glassnode shows that the number of Bitcoin addresses in loss has reached an all-time high of 14.043 billion.
• BTC market cap has decreased by $14 billion and short positions worth $41 million were liquidated in the past few days.
Bitcoin Price Drops Below $29.5K
Bitcoin’s recent price plunge saw it fall below the $29.5K threshold, surprising traders who had expected a bullish breakout due to MicroStrategy’s BTC purchase plans. This downturn indicates bearish pressure pushing against the asset’s value, suggesting that recent surge may have been a trap for investors.
Rise in Losses
Data from Glassnode reveals that over 14 billion Bitcoin addresses are currently in loss based on a seven-day Moving Average – hitting an all-time high and surpassing the previous peak observed on July 31st, 2023. This trend implies that many investors have purchased BTC at high prices and are now experiencing losses due to price volatility.
BTC Market Cap & Short Positions Plunge
The market capitalization of BTC dropped by over $14 billion in just one day, falling from its peak of $582 billion to its current level of $568 billion. Meanwhile, short positions worth approximately $41 million were liquidated – representing the largest short liquidation since July 14th – adding further downward pressure to the asset’s price movement.
Increasing Trading Volume
Interestingly, Bitcoin trading volume appears to be moving in an opposite direction compared to its price decline; showing slight upward momentum rather than mirroring this dropoff in value.
What’s Next For Bitcoin?
It is currently unclear what will happen next for Bitcoin as more bearish pressure continues to push against its value; however given its increasing trading volume it is possible we could see another surge soon if buyers enter back into the market again