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Bitcoin Addresses Missing Hit of 1-Month High as BTC Price Rebounds to $21,000

Bitcoin Addresses Missing Hit of 1-Month High as BTC Price Rebounds to $21,000

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.

Hourly candlestick chart of the BTC/USD pair (Bitstamp). Source: Trade View

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.

Bitcoin address chart in loss (7-day MA). Source: Glassnode/Twitter

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.

Graph of liquidations on the BTC/USD pair. Source: Coinglass

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.

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.

Daily candle chart of the US Dollar Index (DXY). Source: Trade View

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. All investment and trading involves risk. You should do your own research before making a decision.

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