• Bitcoin’s value recently experienced a substantial decrease, plunging under the $29.5K threshold after a bullish breakout had previously sparked bullish confidence among traders.
• According to Glassnode, the quantity of Bitcoin addresses in loss reached an approximate peak of 14.043 billion, setting a new one-month record.
• BTC short positions worth $28 million were liquidated and its market capitalization has dropped from a peak of $582 billion to its current level of $568 billion.
Bitcoin Price Drops Below $29.5K
Bitcoin’s value recently experienced a substantial decrease, plunging under the $29.5K threshold after a bullish breakout had previously sparked bullish confidence among traders with MicroStrategy’s BTC purchase plans. The ensuing drop in Bitcoin’s price implies the presence of bearish pressure, suggesting that the recent surge may have been a trap for traders.
Record Number Of Addresses In Loss
According to Glassnode, the quantity of Bitcoin addresses in loss (based on a seven-day Moving Average) reached an approximate peak of 14.043 billion earlier today – setting a new one-month record and surpassing the previous high of 14.041 billion observed on July 31st 2023. This trend indicates that there are investors who purchased BTC at high prices and are currently experiencing losses due to recent price volatility.
Short Positions Liquidated
Data from Coinglass reveals that BTC short positions worth $28 million were liquidated, with an additional $13.8 million liquidated following the recent plunge – representing the largest short liquidation since July 14th which undoubtedly has had a substantial impact on current price movement.
Market Capitalization Decreases
The market capitalization of BTC has also seen a significant decrease over this period; dropping from its peak of $582 billion down to its current level at around $568 billion – losing approximately 14 billion in just one day alone.
Trading Volume Remains Stable Despite Drop
Interestingly, trading volume for Bitcoin has followed an upward trend despite this decline – indicating that it is yet uncertain whether or not this dip in price will continue further or if this could be another buying opportunity for traders looking to take advantage early on before prices potentially skyrocket once again as seen earlier this month with MicroStrategy’s purchase plans kickstarting an unexpected bull run across all markets .