- Bitcoin
(BTC) has garnered attention by surpassing $52,000. However, maintaining this level proves challenging for Bitcoin’s price as it becomes entangled in a mix of retracement and reactionary buying. - According to data from IntoTheBlock shared by Lookonchain, approximately 848,390 addresses have recently purchased 481,710 BTC.
- A crypto analyst suggests that the price of Bitcoin will peak between $53,000 and $58,000, followed by a retracement ranging from 20% to 40%.
The observed $25 billion loss in Bitcoin addresses could potentially trigger a more significant downturn in the event of panic selling. Here’s the analysis!
Notable Loss in Bitcoin Addresses
Bitcoin (BTC) has attracted attention by surpassing $52,000. However, sustaining this level has proven challenging for Bitcoin’s price as it gets entangled in a mix of retracement and reactionary buying. Additionally, new addresses that bought BTC during the rally faced significant losses, leading to speculation about the possibility of a significant selling wave.
According to data from IntoTheBlock, shared in an article by Lookonchain, approximately 848,390 addresses have recently purchased 481,710 BTC, equivalent to $25 billion. These purchases occurred at an average price of $52,125 during the Bitcoin price rally. However, since that date, the BTC price has significantly dropped.
Therefore, these addresses are currently experiencing losses. When these positions face the pressure of billions of dollars in selling, it could potentially lead to increased selling pressure. In such a scenario, a significant Bitcoin correction may occur, bringing the price below $50,000. This aligns with the recent analysis by crypto analyst Michaël van de Poppe.
The crypto analyst suggests that the price of Bitcoin will peak between $53,000 and $58,000, followed by a retracement ranging from 20% to 40%. However, the current situation indicates a potential correction before the peaks identified by Poppe. On the other hand, Bitcoin has currently recorded minimal liquidations.
According to Coinglass data, $26.06 million worth of BTC was sold in the last 24 hours. The majority of the outflows, $20.39 million, were related to long positions. The decrease in liquidations could be associated with Bitcoin’s price surpassing $52,000.
BTC Price Update
As of the time of writing, the Bitcoin price is trading at $52,180 on Tuesday, February 20th. However, BTC’s trading volume has increased by 20.25%, reaching $22.46 billion. The cryptocurrency holds a massive market capitalization of $1.01 trillion.
Among the expectations of an upcoming selling wave, TradingView has given a “Strong Buy” indicator for Bitcoin. Currently, the Bitcoin price is significantly above the 50-day and 100-day EMAs (Exponential Moving Averages), which are at 45,543 and 42,456, respectively. This indicates a strong bullish sentiment amidst the mix of retracement and reactionary buying.
However, new BTC addresses acquiring BTC at a premium price are likely to experience more losses in a bearish scenario. Hence, the possibility of a selling wave remains strong. On the other hand, Poppe has suggested a long-term target of $150,000 for Bitcoin and advised investors to consider long positions to gain returns.
