It’s been a rollercoaster ride for cryptocurrency investors over the past two months. After a prolonged bearish streak, prices have started to recover in recent days. However, not all market participants have benefited from the upturn. In particular, hodlers of Bitcoin (BTC), the flagship digital asset, have seen their holdings lose value relative to other cryptocurrencies.
According to a tweet and chart that the prominent crypto trading analyst Ali Martinez published on May 31, more than 6.51 million addresses are still in a loss after buying 3.32 million Bitcoins at an average price of $40,160.
Over 6.51 million addresses are underwater after buying 3.32 million $BTC at an average price of $40,160.
These addresses will likely try to break even in the event of a bullish impulse. #Bitcoin is going to need a lot of buying pressure to slice through this supply wall. pic.twitter.com/n8Xg00ZAdm
— Ali Martinez (@ali_charts) May 31, 2022
Martinez’s analyses looked at the addresses of Bitcoin hodlers to see how they were doing. As the chart (above) shows, he found that 54.62% of addresses were in profit, while only 1.89% were “breaking even.” This means that 43.49% of addresses invested in Bitcoin are currently in the red.
However, Martinez notes that things could change in the future depending on market conditions and sentiment.
“These addresses will likely try to break even in the event of a bullish impulse,” Martinez writes. He adds however, that BTC “is going to need a lot of buying pressure to slice through this supply wall.”
Speaking of buying pressure- on May 30, Bitcoin managed to jump back above the psychologically important $30,000 level after falling sharply in the last few weeks.
At the time of writing, the $605 billion market cap apex cryptocurrency is changing hands at $31.800, accelerating its weekly gain to about 7%.
Meanwhile, the CoinMarketCap crypto community – which has historically forecasted Bitcoin prices with an accuracy rate of 80.3% – has predicted that Bitcoin will trade above $41,000 by June 30.
Disclaimer: This article is provided for informational purposes only. It is not intended to be used as investment or financial advice
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