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Historical Data Could Suggest Possible Price Bounce for BTC

Published 07/10/2022, 05:30 AM
© Reuters.  Historical Data Could Suggest Possible Price Bounce for BTC
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  • The net unrealized profit and loss position of short-term Bitcoin (BTC) holders has reached interesting levels.
  • BTC is currently trading at $21,291.69 after a 1.22% drop in price over the last 24 hours.
  • 137,000 BTC worth about $2.8 billion will soon be released into the market.

The net unrealized profit and loss position of short-term Bitcoin (BTC) holders has reached levels that historically have marked BTC macro bottoms. When looking at BTC’s historical data, this situation could be a good thing as it has led to bounces in price in the past.

Entity-Adjusted Short-Term Holder Net Unrealized P/L 7-Day EMA (Source: Glassnode).

Now, investors want to know if history will once again repeat itself for the 4th time.

Total Supply in Profit Held by Short-Term Holders 90-Day Exponential Moving Average (Source: Glassnode).

Although BTC has some historical data to back it up, it is still important to acknowledge that these are only a couple of metrics to take into consideration and it is still very important to look for confluence as well as consider the macro backdrop.

According to CoinMarketCap, Bitcoin (BTC) is currently trading at $21,291.69 after a 1.22% drop in price over the last 24 hours and after reaching a high of $21,877.14 over the same time period. Although BTC is down over the last day, the crypto is still up 11.43% over the last week.

BTC’s 24-hour trading volume is also down 40.64% and is now standing at $29,574,264,674.

In some related news, 137,000 BTC worth about $2.8 billion will soon be released into the market. This is causing some concern for crypto analysts like Miles Deutsher. The Crypto Banter host believes that the release of the 137,000 BTC could lead to a devastating decline in the price of BTC due to the increased sell pressure.

Many crypto fans believe that this drop in BTC’s price could align with Ethereum’s Merge which could in turn lead to “The Flipping” becoming a reality. The Flipping is a historical event where Ethereum overtakes Bitcoin market cap.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.

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