Top Crypto News Today: BTC Addresses in Red, Hope for Bitcoin to Retest $21k Mark

An overview of BTC’s value over the past year

Bitcoin is the largest crypto asset with a market cap of Bitcoin – the top crypto token by market cap of $ 408,675,485,312 traded at an all-time high of $30,000 to $32,000 in July 2021. Institutional investors like Elon Musk had their investments in BTC, out of which he sold 75% of the BTC holdings owing to cash flow constraints. Over the years BTC has been used as an indicator for assessing the value of altcoins. This is similar to buying gold with fiat. 

BTC Price is trading at USD 21,409.90 as of today. Its 24 hours drop is at 0.49%. 

Red Zone for BTC holders 

The ongoing crypto meltdown has brought 17.5 million BTC wallets underwater while the US Dollar is surging in value to combat inflation. The on-chain analytics by Glass node gives a clear picture of Bitcoin holders’ loss overview.

📈 #Bitcoin $BTC Number of Addresses in Loss (7d MA) just reached a 1-month high of 17,629,994.786

View metric:https://t.co/s2ciFMlDcX pic.twitter.com/iOHYGZSjDP

— glassnode alerts (@glassnodealerts) August 23, 2022

Key Takeaways 

• 17.5 million bitcoin wallets holding BTC in hope for a price rebound.
• Wallets holding BTC in the red have increased since August 23, 2022
• BTC slips below 100 week Moving Average and lost the micro trend line 

Source: Glassnode

The number of wallets with BTC have increased from 16,600 in June, 2022 to 17,500 in August, 2022. In addition, the number of wallets have increased from 16,800 to a sharp rise accounting to 17 million wallets in August with an additional 500k in just seven days. 

Investors who have recently bought BTC have witnessed varying degrees of value in the asset which is a cause for concern as of today. Bitcoin’s price patterns have seen five downtrend trips in the last few weeks. As of now BTC is at the lowest from its last low point in July. 

Bitcoin investors entered positions after the asset jumped to a $25k recovery, but the price plummeted making these investors having to drop the ball. 

Additional Read: Bitcoin Price Nosedives below $22000

Bitcoin Liquidations on the rise 

BTC liquidations on derivative exchanges see a high inflow of investors setting off their positions as the asset hits a $21k mark. On August 19,2022, the asset recorded $209.5 million in long position liquidations and $30 million in short positions on exchanges. 

Source: Coinglass

Long and short positions of Bitcoin have drastically reduced since June, 2022. Long positions skyrocketed to 31k with BTC trading at $20,870.27 on August 19, 2022. 

The rising US Dollar 

With Fed interest rates hike, the rise in US Dollar value has been a catalyst for Bitcoin’s oscillating resistance against rising inflation. Eminent trader and financial analyst Rekt Capital observed BTC’s first close before the 200 week Moving Average since July. Investors also noticed the consistent resistance levels of risk assets in line with the surging Dollar rate. 

The U.S. dollar index (DXY), with which Bitcoin has shown inverse correlation to varying degrees in recent years, hit its highest since July 14, passing 109 and up 4.4% from its August lows. 

Source: CoinTelegraph