After experiencing volatility, BTC is currently moving sideways in the range of $19,000 – $19,600.
Meanwhile, market sentiment improved as the Fear & Greed Index rose slightly to 14.
Fear and Greed Index. Source: alternative.me
According to on-chain data, the number of BTC wallets experiencing losses is at a record high
Specifically, let’s see how many wallets holding BTC are suffering losses in total. Thereby the index is at an all-time high with 18.8 million wallets struggling.
Number of BTC wallets that are suffering losses. Source: Glassnode
Besides, if you look at the Net Unrealized Loss index, you will see the same thing. Specifically, the loss level of holders also reached ATH (All-time high).
Net Unrealized Loss Indicator. Source: CryptoQuant
This shows the unhappy situation of the current market.
On-chain data shows US investors suddenly buying back BTC?
Indeed, let’s take a look at the Coinbase Premium Gap index. This index measures the difference between the BTC/USD pair price in Coinbase Pro and BTC/USDT in Binance.
Since Coinbase Pro is the primary crypto exchange for institutional investors in the US, the index often shows their trading activity as well.
Coinbase Premium Gap Index. Source: CryptoQuant
Specifically, in the past few days, the negative index suddenly increased sharply to 43.44.Although it is quite early to confirm, it is likely that some “big hands” in the US have bought BTC.
$16,000 – $18,000 Could Be a Short-Term Bottom for BTC
Currently, the main trend of BTC is still down. Meanwhile, EMA 34 and EMA 89 are about to cross each other in the bearish direction.
At the same time BTC W frame continues to close 1 red Marubozu candle. However, the selling volume is decreasing.
BTCUSDT chart analysis W . frame
Thereby, according to Admin Bao Chau – Trading Advisor of HC, BTC is expected to continue moving sideways. Along with that, the price range of 16,000 – 18,000 USD will likely be hard support for BTC.
Besides, if BTC can bounce off the level of 22,000 USD, the possibility of the price of this coin recovering to 26,000 – 28,000 USD is possible.
Looking at the above indicators, you can see that the number of BTC wallets struggling with losses is at a record high.
Besides, the Coinbase Premium Gap index suddenly increased sharply. This raises the question of whether any “big hands” in the US have bought BTC?
In addition, Admin Bao Chau – Trading Advisor of HC believes that the price range of 16,000 – 18,000 USD will probably be hard support for BTC.
Let’s learn and evaluate together to make the most informed investment decisions. Wish you luck!!! All information contained in this article is not investment advice.