- Currently, more than 8 million addresses are holding BTC below the current price level.
- BTC has remained below the $60,000 price level.
Bitcoin [BTC] has seen significant price volatility in recent weeks, with the chart indicating a pattern of price rising and approaching the $60,000 to $61,000 range, before falling shortly after.
Analysis shows that the main factor behind this behavior is the significant number of holders currently experiencing losses.
Bitcoin continues to fall
The recent analysis of Bitcoin’s price chart reveals a consistent volatility pattern around the $60,000 price range. On August 27, Bitcoin fell from the $60,000 level, starting at around $62,840 and closing at around $59,433.
Since then, Bitcoin has struggled to reclaim the $60,000 mark, despite occasionally reaching that level during several trading sessions.
Source: TradingView
In subsequent sessions, the highest value Bitcoin managed to reach was around $59,000, but it quickly fell from that range. At the end of the most recent trading session, Bitcoin closed at around $59,139, after rising 3%.
However, at the time of writing, Bitcoin has once again fallen below the $59,000 mark, reflecting the continued pattern of recent weeks.
This repeated inability to maintain an uptrend at or above $60,000 indicates a significant resistance level at this price point.
The main reason Bitcoin has not been able to sustain this uptrend is the increased selling pressure when the price approaches or exceeds $60,000.
As the price of Bitcoin rises, many holders, especially those who bought at higher prices, may choose to sell to break even or protect profits.
This selling activity generates downward pressure, preventing the price from remaining stable above these key levels.
Sellers are putting more pressure on BTC
A recent analysis of data from InTheBlok sheds light on why Bitcoin is struggling to reach and maintain the $60,000 price range.
The Global In/Out of the Money chart shows that a significant number of addresses purchased Bitcoin at higher price levels, especially in the $61,705 to $72,500 range.
Specifically, the graph shows that more than 6.9 million addresses within this price range bought Bitcoin.
Additionally, another substantial group of holders purchased BTC at prices between $59,000 and $61,000, totaling approximately 1.7 million addresses. This means that over 8.6 million addresses, representing approximately 16.08% of all BTC holders, are currently holding their BTC at a loss.
This concentration of holders at a loss explains the difficulties BTC has experienced in breaking and maintaining the $60,000 price range in recent weeks.
When the price of BTC approaches or exceeds these levels, many of these holders may be tempted to sell their holdings to regain their investments or minimize their losses.
This selling pressure creates a significant barrier, preventing BTC from maintaining upward momentum above $60,000.
What Bitcoin Needs to Break the Resistance
The large number of addresses experiencing losses acts as a psychological resistance level. As Bitcoin approaches these price points, the market experiences increasing sell-offs, causing the price to drop again.
This pattern is a major reason why BTC has failed to establish a stable uptrend in recent weeks, despite occasionally reaching the $60,000 level during trading sessions.
If BTC wants to break this resistance and maintain higher price levels, the market would have to absorb this selling pressure.
This could happen if there is a significant influx of new buyers willing to buy Bitcoin at this level or if market sentiment changes in a way that encourages holders to hold their positions rather than sell.
Read Bitcoin (BTC) price prediction 2024-25
Furthermore, a recent analysis of the trend of new Bitcoin addresses shows a sharp decline in the number of daily new addresses. According to data from Glassnode, the number of new addresses dropped significantly after August 30, from about 338,000 to about 287,000.
At the time of writing, the number of new addresses has recovered slightly to approximately 296,000.
Source: Glassnode
