According to Glassnode, a crypto analytics firm, a notable portion of Bitcoin’s supply is sold at a higher price. So, this single act is a bearish indicator for the largest digital asset.
Currently, Bitcoin is trading at around $57,377.69 at time of writing, signifying a 4.5% down from last week. Also, BTC is also down about 17% from its all-time high of $69,044.77 from two weeks ago.
Furthermore, Glassnode explains that 15% of the Bitcoin supply has an on-chain cost basis. Which of course, is greater than $57,000. Then, Glassnode insists this is a potentially bearish indicator.
“15% of supply underwater has historically been sufficient to create reflexive downside…”
“if price cannot reclaim higher levels in a reasonable timeframe.”
More so, Glassnode goes on to confirm the unspent transaction output (UTXO) realized price distribution (UPRD) metric.
Then, Glassnode explains.
“UTXO Realized Price Distribution (URPD) shows at which prices the current set of Bitcoin UTXOs were created,..”
“i.e. each bar shows the amount of existing BTC that last moved within that…”
“specified price bucket…”
So, Glassnode adds.
“There are various clusters of coins from key levels throughout 2021,..”
“with the largest being the 1.9 Million BTC moved between $60k and $68k.
Lastly, Glassnode concludes.
“This overhead supply could provide resistance in the coming weeks…”
“should underwater holders look to cut their losses.”