Bitcoin (BTC) holders are under pressure this week as repeated testing of lower levels has led to increased losses.
Data from on-chain analytics firm Glassnode show that there are more portfolios in the red on August 23 than at any time last month.
More than 17.5 million wallets in the red
BTC/USD has fallen below $21,000 five times since late August 19, according to data from Cointelegraph Markets Pro and TradingView, and many traders are already getting nervous looking for that support.
Meanwhile, those who have been buying in the past few weeks are under water to varying degrees as bitcoin is at its lowest level since the last week of July.
How investors added or created positions on the way to this month’s $25,200 is now becoming clearer – there are more BTC launches at an overall loss than ever since July 23rd.
The rise in underwater launches is particularly noticeable since prices suddenly fell last week. At the time of writing, the wallet’s seven-day moving average (MA) stands in the red at over 17.5 million, an increase of 1.5 million in just a few days.
Additional statistics from monitoring platform Coinglass covering position liquidations on derivatives exchanges, meanwhile, show that the vast majority of losses occurred on August 1, with subsequent price movements above the $21,000 bar of little significance.
Aug. 19 sealed a total of $209.5 million in liquidations of long positions on the exchanges — the most since June 13 — as well as $30 million in short positions.
The weight of the dollar is rising on the view
As for the immediate prospect, few were willing to bet on a major revival in the crypto markets.
Also read: BTC: Down $21,000 Despite Miners Surrender? 5 things to know about bitcoin this week
Rekt Capital is a well-known trader and analyst at emphasis the first bitcoin close under the key 200-week MA since July, and there are others Note that as the US dollar rose, riskier assets were exposed.
#SPX500 the 50-Week Moving Average lost last week, and on the first day of this week the 100-Week Moving Average and the micro trend line lost.
What do you think will happen next?
Trend Precognition has some tips highlighted in red. pic.twitter.com/W7wUkt4UBY
—Keith Alan (@KAProductions) August 22, 2022
The #SPX500 missed the 50-week moving average last week, and on the first day of this week it missed the 100-week moving average and the micro-trend line. What do you think of the sequel? Precognition Trend has several clues highlighted in red. pic.twitter.com/W7wUkt4UBY- Keith Alan (@KAProductions) August 22, 2022
The US dollar index (DXY), which bitcoin has shown an inverse correlation to various levels in recent years, hit its highest level since July 14, peaking at 109 and rising 4.4% from the August lows.
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