Although Bitcoin has fallen by more than 75% compared to its historical price of $68,786 in November of last year; Some analysts, citing such data, believe that we may not have reached the bottom of Bitcoin’s price yet.
To Report As the price of Bitcoin is far from its highs of last year, many investors have been selling their Bitcoins at a loss recently, analysts at the cryptocurrency analysis platform Crepito Potito said.
However, the percentage of investors who now sell their holdings below the price may not be enough for the market to bottom.
Citing the Adjusted Spent Output Profit Ratio (aSOPR) indicator, which excludes all Bitcoin transactions with a lifetime of less than a year, CryptoQuant’s analysis shows that many Bitcoin investors are now selling their holdings at a loss.
In this way, this indicator can show that Bitcoin has finally reached its lowest level after a sharp price decline compared to last year.
However, the cryptocurrency strategist cautioned that analyzing the situation is not that simple. At least another interpretation can be made based on another indicator called Unspent Transaction Outputs (UTXO).
The unspent transaction output indicator shows the amount of bitcoins left in the wallet after the transaction. CryptoQuant says that 70% of the unspent output of Bitcoin transactions is still in profit; While in the past down markets, this amount was less than 50%.
In part of this analysis it is stated:
Most of the people selling their bitcoins at a loss now are relatively new investors. We will truly bottom when more than half of the investors in the entire cycle, including them, are at a loss.
Trading in the $16,500 price range means that Bitcoin’s value has fallen by more than 75% since its record high in November last year.
However, DonAlt, another popular cryptocurrency analyst, has recently warned that Bitcoin could fall as low as $9,500 if it were to follow the trend of previous bear markets.