On-chain data shows that the percentage loss of Bitcoin supply has increased to nearly 50% now as the cryptocurrency price drops below $20K.
49.94% of the total Bitcoin supply is now experiencing some losses
As pointed out by an analyst at CryptoQuant MailThe drop of less than $20,000 has now put nearly 50% of the supply underwater.
The “Percent supply at loss“It is an indicator that measures which part of the total Bitcoin supply is currently in the red.
The meter works by checking the conversion history of each coin in the chain to see what price it was last moved at.
If the previous selling price of a coin was more than the current BTC price, then that particular coin is experiencing some loss at the moment.
Related reading | Long-term Bitcoin holders now own close to 80% of the realized capital
On the other hand, if the coin was last moved at a lower price than now, the coin makes a profit instead. It is normal for the losing bid to count only the previous type of currency.
Now, here is a graph showing the trend in bitcoin’s supply loss over the past few years:
Looks like the value of the indicator has been rising up recently | Source: CryptoQuant
As you can see in the chart above, the percentage of Bitcoin supply loss has been on the rise in recent weeks as the price has been crashing.
The latest drop in the value of the cryptocurrency, which has now brought it below the $20,000 level, has prompted an additional amount of underwater supply.
Now, the total percentage of red supply has reached nearly 50%. Historically, the periods with index value were between 50% to 60% when the coin had noticed bottoms before.
For this reason, the range may be ideal for bitcoin accumulation. However, there may still be some ways ahead of the true bottom as the losing bid has now only reached the 50% mark.
During the last two troughs, the scale value was at least 55%. If a similar pattern follows now as well, the cryptocurrency may have the potential for more downside than before bottom In the end.
At the time of writing this report, Bitcoin price It is floating around $19.2K, down 33% in the past seven days. Over the past month, the cryptocurrency has lost 37% of its value.
The chart below shows the currency price trend over the past five days.
The value of the crypto seems to have plunged down over the past day | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com