The price of bitcoin has fluctuated over the past week. Mostly the price rose, hitting one-month highs in the process. However, as the month of July draws to a close, bitcoin has begun to lose the gains it has made in the last week. This has brought the percentage of holders in profit to below 50%.
Only 47% profit
Holders of bitcoin were one of the few digital asset holders who managed to maintain their profitability through the bearish trend. Even when the big cryptocurrencies saw the number of profit holders drop below half, the cryptocurrency pioneer had retained more than half of all profit holders. That is, until now, as the recent price slump has made things more difficult in space.
Related reading | How this whale lost 100 ETH through an ENS domain name
According to data from IntoTheBlock, the number of profitable bitcoin holders has plummeted over the past two days. In total, 47% of all portfolios are currently in profit. While most of the profit holders remain, it’s by a small margin and down more than 3% from where it was last week.
BTC price falls to $21,800 | Source: BTCUSD on TradingView.com
This has also increased the number of those nursing losses over the past two days. A total of 46% of all holders are currently at a loss, while 6% are in neutral territory. For this 6%, they simply bought their tokens at the price at which the digital asset is currently trending.
Bitcoin is turning bearish
It is important to note that the recent bullish run in the price of bitcoin has seen it mark a series of bullish indicators. However, as the cryptocurrency market is used to doing, a drop in the price has erased most of these bullish indicators.
The first is now the 5-day moving average. It is by no means the most important indicator, but it does show investor buying behaviors in the very short term. Bitcoin’s run to $ 24,000 saw the moving average rise, but with the rapid collapse, investors were extremely cautious as the price fell below the 5-day moving average at $ 22,865.
Related reading | Offshore rewards indicate the recovery of sentiment among cryptocurrency investors
Another important metric is the 50-day moving average. Bitcoin is now going well below that, which is not a good sign for the next couple of weeks. However, it is also important to note that this could change rapidly if the buildup increases.
However, as bitcoin enters the new week, a war between bears and bulls for dominance is obviously underway. As the weekend is known to set a precedent for the new week, bitcoin’s performance may be the opposite of last week.
Featured image from Forbes, chart from TradingView.com
To follow The best Owie on Twitter for market insights, updates and occasional funny tweets …