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Bitcoin (BTC) hodlers are feeling the squeeze this week as repeated exams of decrease ranges spark growing losses.
Information from on-chain analytics agency Glassnode shows extra wallets are within the purple as of Aug. 23 than at any time prior to now month.
Over 17.5 million wallets within the purple
BTC/USD has seen 5 journeys beneath $21,000 because the finish of Aug. 19, information from Cointelegraph Markets Professional and TradingView exhibits, and the search for help is already making plenty of traders nervous.
Meanwhile, those who bought in recent weeks are underwater to varying degrees, as Bitcoin is at its lowest since the last week of July.
The extent to which investors added or created positions on the way to this month’s $25,200 highs is now becoming clearer — more BTC addresses are at an overall loss than at any time since July 23.
The increase in underwater addresses has been particularly pronounced since last week’s sudden price drop. At the time of writing, the seven-day moving average (MA) of wallets in the red sits at more than 17.5 million — an increase of 1.5 million over several days.
Additional statistics from monitoring resource Coinglass covering liquidations of positions on derivatives exchanges, meanwhile, point to the vast majority of pain being inflicted on Aug. 1, with subsequent price movements across the $21,000 mark being of little importance.
Aug. 19 sealed a total of $209.5 million in long position liquidations on exchanges — the most since June 13 — along with $30 million of short positions.
Dollar rises to pressure outlook
Turning to the immediate outlook, few were prepared to bet on a major renaissance in crypto markets.
Related: BTC to lose $21K despite miners’ capitulation exit? 5 things to know in Bitcoin this week
Popular trader and analyst Rekt Capital highlighted Bitcoin’s first shut beneath the important thing 200-week MA since July, and others noted danger belongings confronted resistance whereas the USA greenback broke increased.
#SPX500 misplaced the 50-Week Shifting Common final week, and on the primary day of this week has misplaced the 100-Week Shifting Common and the micro pattern line.
What do you assume comes subsequent?
Pattern Precognition has some clues highlighted in purple. pic.twitter.com/W7wUkt4UBY
— Keith Alan (@KAProductions) August 22, 2022
The U.S. greenback index (DXY), with which Bitcoin has proven inverse correlation to various levels in recent times, hit its highest since July 14, passing 109 and up 4.4% from its August lows.
The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, you need to conduct your individual analysis when making a choice.
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