According to on-chain data from CryptoQuant, a blockchain analysis platform, the Bitcoin supply in loss with the seven-day moving average stands at 32%, a nine-month low. This is the lowest level since April 2022, when the price of Bitcoin changed hands at the $40,000 range.
Bitcoin Supply In Loss By 32%
The Bitcoin supply in loss is a metric that measures the absolute number of coins currently in the loss-making territory. This data compares the price at which the currency in question was last moved and the spot rate. If the price is lower than the current price, then the coin is a loss.
The metric does not quantify the size of the loss. Instead, it states whether it is in profit or loss without giving exact figures on the profitability or loss of each coin.
For traders, how the supply at a loss changes over time could be used to select prices or tops. In particular, analytics platforms say investors are keeping tabs, using the metrics to timely enter or exit the market. Historically, when the supply in loss is within the range of 50-60%, Bitcoin prices could be going down.
Currently, according to on-chain data, the Bitcoin supply in loss stands at 32%, the lowest in nine months, and could indicate that a trend reversal is imminent.
According to an analyst, citing on-chain data from CryptoQuant, prices capitulate every time the Bitcoin supply in loss rises above 50%. Tops or peaks can be better timed by combining the supply in loss and the supply in profit lines.
The stock in profit tracker uses the same principle as its counterpart, stock in loss. However, it only considers the number of coins in profit since the last time they were moved. They move in the opposite direction.
After prices fell to 2022 lows in November 2022, the Bitcoin supply in loss decreased while those in profit increased. Considering the state of price action, when the two lines, representing supply and loss, cross each other, analysts can easily identify the point of reversals. The last supply in loss crossed over supply in profit was in March 2020. Then, the Bitcoin prices increased from $5,000.
61% Of BTC Owners Are Profitable
With rising Bitcoin prices, most money holders have a profit. Parallel data from IntoTheBlock reveals that 61% of money holders are in the money. Only 36% are in the red, and only 3% are at the break.
During the last trading days, BTC prices consolidated within a channel, finding resistance around the zone of $23,300 and $23,800.
Some traders call for tops. Meanwhile, sentiments from IntoTheBlock indicate that traders are mostly neutral.
Main image from Canva, Chart from TradingView