According to data from analytics forum Cryptoquant, the amount of BTC addresses in profit stands at 55%. Wu Blockchain also tweeted that the amount of ETH addresses in loss is at a 2-year high.
The present situation of only 55% addresses existing in profits arises because of the ongoing price downtrends. Bitcoin hit ATH of $68k sometime last year. Following this, BTC has turned bearish, shedding value of half of its ATH.
Presently, BTC trades at $28.8k, a 2.52% drop in the last 24 hours and a 0.7% drop in the past seven days. BTC might keep on going with a bearish trend. BTCs most urgent resistance stands at $30.1k, accompanied by $30.8k.
When speaking about the BTC situation, notably wallets in profits, KriptoMevsimi emphasized similar events in the past few years. For example, KriptoMevsimi cited 2017-2018 and 2019, when the BTC supply in profits dropped to 55%. In those years, BTC prices plummeted further in the few months that followed.
KriptoMevsimi then stated that “2-3 months of boring price action. Then the last capitulation possible with %30-%50 additional price drop.” According to KriptoMevsimi, the continued BTC price drops could persist for the next three months, which will cause the coin to lose between 30% and 50% of its value.
Moreover, BTC would eventually trade at about $15k before it starts to recoup. The long-term support level is around $26.7k, but if BTC erupts below that, the coin could shed even further.