Bitcoin: Where panic emerges, BTC holders see opportunity
- 49% of Bitcoin holders are in profit as the price slipped below $25,000 lately.
- If the price dips to $23,000, then long-term market participants may create demand in the zone.
For the first time this year, less than half of Bitcoin [BTC] holders are in profit. As confirmed by IntoTheBlock, 49% of the king coin holders are in gains. On the other hand, 39% of investors with BTC in their portfolios are at a loss. And lastly, 12% are at the break-even point.
— IntoTheBlock (@intotheblock) June 15, 2023
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Gazing globes when the price dips
The major reason this happened could be linked to Bitcoin’s price falling below the $25,000 threshold.
Last year, this would have been an impressive feat. But Bitcoin’s 53% Year-To-Date (YTD) hike brought back hopes of continuous respite. But recently, it has been pegged back by selling pressure and regulatory heat.
Nonetheless, one cannot deny that the decrease in price triggered fear in the market. However, data from the blockchain-powered crypto insight platform showed that demand soared between $18,900 and $23,000.
This was before the BTC value rose to $30,000. Usually, an action of this magnitude suggests that a sizable number of market participants were bullish on the long-term price action.
So, if the price slips from the current level, then many holders may be prepared to scoop up tons of BTC. IntotheBlock pointed out,
“Over 1.1 million addresses acquired Bitcoin around the 23k level and this could certainly serve as support”
Interestingly, BTC has been able to revive above $25,000 at press time. Nonetheless, it seemed that quite a number of investors took the opportunity of the price fall to show commitment to holding BTC for the long term.
This was because Santiment’s data revealed that the BTC supply outside of exchanges increased by over 500,000 between 5 and 15 June.
However, the exchange inflow count dropped to 11,1000. Usually used to measure the rate of deposits into exchanges, an increase in the metric would have suggested an increase in selling pressure.
When compared with the supply outside of exchanges, the metric indicates that only a select few were willing to sell BTC at press time price.
Read Bitcoin’s [BTC] Price Prediction 2023-2024
Risks of the downside
However, before BTC’s resurgence, crypto analyst Michaël van de Poppe opined that the lows were getting swept. This implies price compression and a possible movement of liquidity to the downside.
There we go on #Bitcoin.
The lows are getting swept.
Heavily interested to see response at the $25K region. pic.twitter.com/0ekuDdRptL
— Michaël van de Poppe (@CryptoMichNL) June 14, 2023
According to van de Poppe’s chart, if BTC fails to hold on to $25,000, then it might eventually fall into the $23,000 demand area.
While this has not been the case, holders might need to watch out for other happenings in the market.
For instance, the stablecoin market was recently hit as Tether [USDT] lost its dollar peg once again. As the go-to safe haven asset for turmoil periods in the market, this occurrence could also have a significant impact on which action BTC holders take.