Bitcoin’s brief dip below $50,000 coincided with the highest weekly trading volume (~$99B) since the November 2022 FTX collapse.
Bullish trader sentiment leading up to this crash has pushed the average returns of BTC wallets active in the past 30 days to their lowest point in 26 months.
📊 Bitcoin's brief visit below $50K coincided with the largest week of volume (~$99B thus far) since the November, 2022 FTX collapse. And due to the bullish trader sentiment just prior to this crash, average returns of BTC wallets active in the past 30 days fell to 26-month lows. pic.twitter.com/z0D6NRwUDZ
— Santiment (@santimentfeed) August 5, 2024
As Bitcoin’s price fell to $50,000, the percentage of profitable holders dropped to 75%, a level last seen in January when prices bottomed around $39,000. Currently, traders are experiencing their most negative unrealized profit margins since November 2022.
As Bitcoin's price fell to $50k, the percentage of holders in profit dropped to 75%.
This level was last seen in January when prices formed a local bottom around $39k. pic.twitter.com/CAR5ju5VOR
— IntoTheBlock (@intotheblock) August 5, 2024
According to f2pool, when Bitcoin dropped to $52,000, only specific mining machines like Antminer S21 Hyd, S21, Avalon A1466I, Antminer S19XP Hyd, and S19XP remained profitable. At an electricity cost of $0.07/kWh, most Bitcoin mining machines are now operating below the break-even point.
Today, Bitcoin has dropped to as low as $52,300. According to f2pool, when Bitcoin dropped to $52,000, only Antminer S21 Hyd and S21, Avalon A1466I, Antminer S19XP Hyd and S19XP were profitable. At $0.07/kWh, most Bitcoin mining machines have fallen below the break-even point.…
— Wu Blockchain (@WuBlockchain) August 5, 2024
Historically, August and September are challenging months for Bitcoin, with average losses of -7.82% and -5.58%, respectively. This historical trend adds to the current market concerns.
Historically, August and September are the worst months for #Bitcoin price performance, with average losses of -7.82% and -5.58%, respectively. pic.twitter.com/y9lGeHcFf1
— Ali (@ali_charts) August 4, 2024
Next Crucial Price Level For Bitcoin Is At $47,140, Watch Out!
A key support level for Bitcoin is around $47,140, where nearly 900,000 addresses previously bought 489,000 BTC. This level is crucial for maintaining market confidence and preventing further declines.
One of the key support levels for #Bitcoin is around $47,140, where nearly 900,000 addresses previously bought 489,000 $BTC! pic.twitter.com/zcYejFdAS4
— Ali (@ali_charts) August 5, 2024
Bitcoin’s MVRV (Market Value to Realized Value) Pricing Bands indicate that BTC needs to reclaim $54,000 as support to avoid a potential drop to $40,000. If Bitcoin can maintain the $54,000 support level, the next key resistance on the upside is $67,000.
Based on the #Bitcoin MVRV Pricing Bands, $BTC needs to reclaim $54,000 as support to prevent a drop to $40,000. If the $54,000 support holds, the key resistance on the upside for #BTC is $67,000! pic.twitter.com/O6MYJHXNID
— Ali (@ali_charts) August 5, 2024
The coming weeks will be critical for Bitcoin as it navigates these support and resistance levels amidst a backdrop of historical seasonal weakness. Traders and investors will be watching closely to see if Bitcoin can stabilize and reclaim higher ground, or if further declines are on the horizon.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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