The leading cryptocurrency, Bitcoin (BTC), fell below $70,000 following a downward trend seen in recent weeks and yesterday’s BTC sale by institutional bull Strategy.
As BTC fell below $70,000 for the first time since April, the percentage of investors experiencing losses also increased.
CryptoQuant analyst Julio Moreno states that the loss in BTC supply has reached 40.6%, meaning that 40.6% of the total supply is at a loss.
Nevertheless, the analyst says that Bitcoin has not yet hit its bottom.
According to the analyst, citing CryptoQuant data, the percentage of Bitcoin supply that is at a loss has risen to 40.6%.
However, according to Moreno, this ratio may not signal the bottom of the market. At this point, the analyst stated, “Based on past data, this ratio is still not enough for us to see that the price has bottomed out.”
Analyzing historical data, Moreno noted that since 2015, major market lows have typically occurred when this indicator reached the upper limit of its long-term downtrend line.
The analyst noted that while in previous bear markets a bottom required more than 60% of the supply to be out of reach, this threshold has consistently decreased in subsequent cycles.
While the current 40.6% level indicates significant market stress, Moreno stated that it has not yet reached the bottom, historically considered the best buying opportunity.
Finally, the analyst suggested that if the Bitcoin price weakens further or moves sideways, the percentage of supply at a loss could retest this critical trend line.
*This is not investment advice.
