- BTC has moved to the $60,000 price level at the time of writing.
- Shortholders have suffered more losses due to the price volatility.
Bitcoin [BTC] has faced significant challenges in maintaining its position above the $60,000 price level, with the coin regularly falling below this key threshold in recent weeks.
This volatility has particularly affected short-term Bitcoin holders, many of whom are now holding their assets at a loss due to the fluctuating price.
Short Bitcoin holders at a loss
A recent report has revealed that over 80% of short-term Bitcoin holders were holding their BTC at a loss at the time of writing. This meant that their Bitcoin investments were worth less than what they initially paid.
This situation arose as Bitcoin continued to struggle around the $60,000 price level.
The analysis drew parallels between the current scenario and similar market conditions in 2018, 2019 and mid-2021.
During those periods, a large portion of short-term holdings were also held at a loss, leading to more panic selling. This behavior contributed to long-term bearish trends as investors rushed to cut their losses.
AMBCrypto’s analysis of the 30-day market value to realized value (MVRV) on Santiment confirmed the challenges facing Bitcoin holders in the near term.
The benchmark indicated that these holders have been in a losing position for several weeks. The MVRV has been below zero since the beginning of the month, indicating that most short-term holders were underwater.
The MVRV has remained below zero for quite some time, indicating that short-term holders have generally held on at a loss.
On August 5, the MVRV fell to around -13%, underscoring the extent of the losses.
Source: Santimet
By August 18, the MVRV had improved to around -5%, still in negative territory but with some recovery.
Over the past 48 hours, the situation has improved further, with the MVRV increasing to around 1% at the time of writing. This positive shift is largely due to recent price increases, which eased some of the pressure on short-term holders.
More Bitcoin holders generally remain profitable
Shifting the focus from short-term holders to the general Bitcoin holding base reveals a more positive outlook.
According to data from InTheBlokDespite recent price fluctuations, a substantial majority of Bitcoin holders still made profits.
Specifically, more than 80% of all Bitcoin addresses, equivalent to approximately 45.45 million addresses, were “in the money,” meaning they held BTC at a price higher than their purchase price.
Additionally, approximately 6.9 million addresses, or about 12.9% of the total, were out of the money, meaning these holders had incurred a loss, based on press time prices. 2% of the addresses were break-even.
Although short-term holders have been hit harder by the recent price declines, the market as a whole is still largely profitable.
This means that reactions from short-term holders, who are more likely to sell at a loss, are unlikely to have a significant impact on broader BTC price movements.
Bitcoin price in the last 48 hours
At the time of writing, Bitcoin has seen a price increase of over 2%, bringing the price to around $60,800. This follows a nearly 1% increase during the previous trading session, taking the price to around $59,452.
The recent gains have pushed Bitcoin closer to a critical resistance level, which is marked by the short-term moving average (yellow line) around $60,000.
Source: TradingView
Read Bitcoin’s [BTC] Price forecast 2024-25
Suppose Bitcoin can break through the $60,000 resistance provided by the short-term moving average.
In that case, the next major resistance level is around $63,000, marked by the long-term moving average (blue line). This level will be the next critical target that Bitcoin will reach as it continues its uptrend.