Bitcoin Buyers in Recent Rally Facing Significant Losses: Will It Trigger a Sell-Off?
The recent surge in the price of Bitcoin (BTC) beyond $52,000 has generated excitement among crypto enthusiasts. However, the BTC price has struggled to maintain that level, leading to a rebound and pullback frenzy. To make matters worse, over 840,000 new Bitcoin addresses that bought BTC during the rally are currently experiencing losses, raising concerns about a potential massive sell-off.
Over 840,000 New Bitcoin Addresses Suffer Losses
Data from Into The Block reveals that around 848,390 addresses purchased approximately 481,710 BTC (equivalent to $25 billion) at an average price of $52,125. Unfortunately, the BTC price slipped significantly after these purchases were made, resulting in losses for these addresses.
- This could potentially lead to increased selling pressure once these positions break even.
- A major Bitcoin correction could ensue, pushing the price lower than $50,000.
- Analyst Michaรซl van de Poppe also predicts a 20-40% pullback before reaching new highs.
However, it is important to note that Bitcoin has experienced minimal liquidations so far. In the last 24 hours, $26.06 million worth of BTC holdings were liquidated, with long positions accounting for the majority of withdrawals. This drop in liquidation can be attributed to the recent rebound above $52,000.
BTC Price Update
Currently, the Bitcoin price is down by 0.54%, settling at $52,090.24. Despite this slight dip, the trading volume for BTC has increased by 20.25% to $22.46 billion. With a market capitalization of $1.01 trillion, Bitcoin continues to be a dominant force in the cryptocurrency market.
While there are speculations about an impending sell-off, TradingView has given Bitcoin a “Strong Buy” indicator. The BTC price is significantly higher than the 50-day and 100-day EMAs, indicating a strong bullish sentiment despite the rebound and pullback frenzy.
Hot Take: Will Bitcoin Buyers Cut Their Losses or Hold for Long-Term Gains?
The recent losses incurred by fresh Bitcoin buyers have raised concerns about a potential sell-off. However, crypto analyst Michaรซl van de Poppe suggests that despite a possible correction, Bitcoin could reach new highs and even hit $150,000 in the long run. So, if you are one of those buyers facing losses, you may want to consider holding your BTC positions for potential long-term gains.
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