Bitcoin

when

Bitcoin experiences the “deepest correction” in 24 months, impacting the short-term holders (STHs) with unrealized losses, according to onchain data from Glassnode.&nbsp;
Data from <a href="https://subscription.cointelegraph.com/?_gl=1*7499wx*_ga*MTQ0MzQ0NzI4Ny4xNzE2MzY1NTA0*_ga_53R24TEEB1*MTcxNjM2NTUwNC4xLjEuMTcxNjM2Njg2MC4wLjAuMA..">Cointelegraph Markets Pro</a> and <a href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" target="_blank" rel="noopener nofollow">TradingView</a> reveals that in the latest drawdown, the price of Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) dropped by more than 16.5% from a high of $63,801 on July 1 to set a swing low at $63,499 on July 5 in what Glassnode describes as the “deepest correction since late 2022.”
<blockquote data-ct-non-breakable="true">
 “Between May and July, the market experienced its deepest cycle correction, recording a drawdown exceeding -26% from the ATH.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/6ada4d55-8185-4d91-b9cf-fb24152602aa.png" alt="Bitcoin traders ‘under pressure’ after deepest correction since 2022 erases profits" title="">
 <figcaption style="text-align: center;">
 Bitcoin price performance. Source: Glassnode
 </figcaption>
</figure>
Despite this downturn, Glassnode’s The Week Onchain newsletter reports that the correction is notably shallower than past cycles. It points to a strong market structure and “reduced volatility as Bitcoin matures as an asset class.”
<blockquote data-ct-non-breakable="true">
 “If we assess price performance relative to each cycle low, the 2023-24 market has behaved eerily similar to the last two cycles (2018-21 and 2015-17). The reason for Bitcoin following such a similar path is a regular topic of debate, but it continues to provide a valuable framework for analysts to think about cycle structure and duration.”
</blockquote>
Glassnode analysts found that with the sell-off, 83% of the supply controlled by short-term holders — addresses that have held Bitcoin for less than 155 days — has fallen into unrealized losses. 
According to the chart below, 2.9 million BTC (approximately $166.75 billion at current rates) of the 3.2 million BTC ($184 billion) held by STHs were <a href="https://cointelegraph.com/news/bitcoin-price-short-term-holder-crypto-quant-analysts">pushed below their cost basis</a> with the recent sell-off to $53,000. 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/806ce7fd-7a34-4114-b70c-28909e67a9d0.png" alt="Bitcoin traders ‘under pressure’ after deepest correction since 2022 erases profits" title="">
 <figcaption style="text-align: center;">
 Bitcoin STHs supply plunges into loss. Source: Glassnode
 </figcaption>
</figure>
According to Glassnode analysts, this placed significant pressure on Bitcoin and the broader crypto market. 
As long as the BTC price remains below $58,000 for the next few days, the long-term outlook for <a href="https://cointelegraph.com/learn/what-is-bitcoin-a-beginners-guide-to-the-worlds-first-cryptocurrency">Bitcoin</a> price will remain bearish as this level acts as a significant resistance zone.
At the time of publication, Bitcoin was trading at $57,485 and was fighting stiff resistance in its recovery path compared to the support it enjoyed on the downside.
The chart below corroborated this, showing that the 200-day exponential moving average (EMA) at $58,180 posed the first resistance line for the bulls. Another barrier could emerge from the $63,880 level, where the 50-day and 100-day EMAs appear to converge.
Aggressive selling from this supplier congestion zone may curtail any attempts to push the price higher as investors book profits or break even.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/66065105-16fe-45b8-a9ec-af962b8adf69.png" alt="Bitcoin traders ‘under pressure’ after deepest correction since 2022 erases profits" title="">
 <figcaption style="text-align: center;">
 BTC/daily chart. Source: TradingView
 </figcaption>
</figure>
Popular analyst Daan Crypto Trades observed that reclaiming the 200-day EMA and holding above $59,000 would be a “good start” for Bitcoin bulls. 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/03211923-c77b-4ad8-8569-144f0331e05b.png" alt="Bitcoin traders ‘under pressure’ after deepest correction since 2022 erases profits" title="">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/DaanCrypto/status/1811068614323388901" target="_blank" rel="noopener nofollow">Daan Crypto Trades</a>
 </figcaption>
</figure>
Liquidation data from CoinGlass shows high short bids building up near the 200-day EMA at $58,587, asserting the importance of this level.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/4464ed82-e750-4ade-b458-e787034c2f6e.png" alt="Bitcoin traders ‘under pressure’ after deepest correction since 2022 erases profits" title="">
 <figcaption style="text-align: center;">
 Bitcoin liquidation heat map. Source: CoingGlass
 </figcaption>
</figure>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin traders ‘under pressure’ after deepest correction since 2022 erases profits

Cointelegraph

Otros artículos publicados el 10 jul 2024

Qubetics Whitelist Ignites Growth, Leaves Solana and The Sandbox in Uncertainty Trap

Top Airdrops for Passive Income 2024

BlockDAG Shatters Expectations: Mining Revolution Begins Two Months Early With X1 Miner App! Tron...

Crypto Community Eagerly Awaits Ethereum ETF and Upcoming Project Launch

Agoric Unveils Orchestration for Next-Gen Web3 Applications

No Miner Sell Pressure: Why Ethereum Could Outperform Bitcoin in Upcoming Rally

¡Únete a nuestro boletín gratuito para recibir actualizaciones diarias de criptografía!