Ethereum In Danger: Analyst Explains What Could Trigger Crash To $1,800

An analyst has explained how losing this on-chain demand zone could cause Ethereum to witness a crash to as low as $1,800. Ethereum Is Currently Retesting A Major On-Chain Support Zone In a new post on X, analyst Ali Martinez has discussed about how Ethereum is looking like in terms of investor cost basis distribution right now, citing data from the market intelligence platform IntoTheBlock. In the above chart, the dots represent the amount of ETH that was last purchased by investors or addresses inside the corresponding price range. As is visible, the $2,292 to $2,359 range stands out in terms of the size of its dot, suggesting that some heavy buying had occurred between these levels. Related Reading: Bitcoin Sentiment Spikes After Mild Price Jump: Crowd Too Excited Too Quickly? More specifically, almost 52.3 million ETH was acquired by 1.9 million addresses inside this range. Since Ethereum is currently retesting the range, all these investors would be just breaking-even on their investment. To any investor, their cost basis is naturally an important level and thus, they may be more prone to making some kind of move when a retest of it happens. For ranges that host the acquisition level of only a small amount of holders, though, any reaction resulting from a retest isn’t anything too relevant for the wider market. In the case of price ranges that are huge demand zones, however, a retest can cause visible fluctuations in the asset’s price. The aforementioned Ethereum range naturally belongs to this category. As for how exactly a retest of a large demand zone would affect the cryptocurrency, the answer lies in investor psychology. Retests that take place from above, that is, of investors who were in profit just before the retest, generally produce a buying reaction in the market. This is because these holders may believe the asset will go up again in the future, so getting to buy more at their cost basis can appear like a profitable opportunity. As Ethereum is currently retesting the $2,292 to $2,359 range, it’s possible it may feel support and find a rebound. In the scenario that a break under it takes place, however, the cryptocurrency’s price may be in danger. From the chart, it’s apparent that the ranges below this demand zone only carry the cost basis of a small amount of investors, so they may not be able to prevent a further decline in the asset. Related Reading: Legendary Bitcoin Puell Multiple Finally Enters Buy Territory “If this demand zone breaks, we could see a sell-off driving ETH toward $1,800,” notes the analyst. A drawdown to this level from the current price would mean a crash of more than 21% for the coin. It now remains to be seen how the Ethereum price will develop in the coming days and if the on-chain support zone will hold. ETH Price After retracing its recovery from the last few days, Ethereum is back at $2,300, which is inside the aforementioned price range. Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com

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Bitcoin Plummets To $59,000, On-Chain Data Reveals Why

Bitcoin has observed a plunge to the $59,000 level during the past day. Here’s what could be behind it, according to on-chain data. Bitcoin Exchange Inflow Spiked Just Before The Crash In a new post on X, CryptoQuant Head of Research Julio Moreno discussed the latest trend in Bitcoin Exchange Inflow. Exchange Inflow is an on-chain metric that tracks the total amount of assets being transferred into the wallets of centralized exchanges. Investors deposit many coins on these platforms when this indicator’s value is high. One of the main reasons holders may transfer to exchanges is for selling-related purposes so this trend can have bearish consequences for BTC’s value. Related Reading: Litecoin Sees Sudden Exodus Of Retail Investors: Why This Can Be Bullish On the other hand, the low metric implies holders aren’t moving that many coins from self-custody into exchanges, which, depending on whether outflows are also occurring, can potentially be bullish for the cryptocurrency. Now, here is the chart shared by Moreno that shows the trend in the Bitcoin Exchange Inflow over the past few days: As displayed in the graph at the top, the Bitcoin Exchange Inflow saw some notable spikes in the lead-up to the latest price plunge. The version of the indicator in the chart is specifically for the spot platforms, so selling was likely the goal of the investors making these deposits. The CryptoQuant head has also attached the data for another metric: the Spent Output Value Bands version of the Exchange Inflow, under the chart for the Exchange Inflow. This indicator shows how the Exchange Inflow breaks down according to the transactions’ size. In the graph, Moreno has specifically highlighted the 1,000 to 10,000 BTC value band, corresponding to addresses carrying between 1,000 and 10,000 tokens in their balance. Investors of this scale are popularly known as the whales and are considered among the market’s most influential entities. As the chart shows, the Exchange Inflow for these large Bitcoin holders also spiked alongside the spikes in the general metric, implying that the whales contributed to some of the deposits. Related Reading: Solana, Ethereum Attract Traders Amid Bitcoin Open Interest Plunge Given the timing of the inflows made by these humongous investors, it’s probable that this selling was partially responsible for the bearish price action the cryptocurrency witnessed during the past day. As such, the indicator could be worth monitoring shortly, as more large deposits could suggest that the Bitcoin sellers aren’t done yet. BTC Price At the time of writing, Bitcoin is floating around $59,900, down almost 4% over the last 24 hours. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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Bitcoin Observes Pullback To $58,000: Is This The Cause?

Bitcoin has observed a pullback down to the $58,000 level during the past day. Here’s what could be the cause behind it, according to on-chain data. Exchanges Have Seen A Large Amount Of Tether Withdrawals Recently According to data from the market intelligence platform IntoTheBlock, centralized exchanges have recently seen a Tether (USDT) outflow spree [...]

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Why Did Bitcoin Plunge Under $58,000? On-Chain Data Says This

Bitcoin has observed a crash below the $58,000 level today. Here’s what could be a potential cause for it, according to on-chain data. Bitcoin Long-Term Holders Have Just Taken Large Profits As pointed out by an analyst in a CryptoQuant Quicktake post, the Bitcoin long-term holders harvested a large amount of profits during the latest price drawdown. Related Reading: These Are The Altcoins In Buy Zone, Analytics Firm Reveals The on-chain metric of interest here is the “Spent Output Profit Ratio” (SOPR), which basically tells about whether the BTC investors are selling/transferring their coins at a profit or loss. When the value of this indicator is greater than 1, it means the holders as a whole are realizing a net profit with their selling right now. On the other hand, the metric being under this threshold implies the dominance of loss-taking in the market. In the context of the current topic, the SOPR of a specific segment of the user base is of interest: the long-term holders (LTHs). This cohort includes the investors who have been holding onto their coins since more than 155 days ago. The LTHs are considered to be the resolute side of the market, as they rarely sell regardless of whatever may be going on in the wider market. As such, the times that they do sell can be all the more noteworthy. It would appear that the recent Bitcoin market conditions have managed to break even these diamond hands, as the below chart for their SOPR suggests. As is visible in the above graph, the Bitcoin LTH SOPR has seen a high density of spikes above the 1 mark during the past day. This would suggest that these HODLers have moved some coins that were previously carrying significant profits. More particularly, the indicator hit a value of more than 10 during a lot of these spikes, implying that this group realized profits equal to over ten times the losses during those transactions. As the LTH SOPR spikes came just before BTC’s descent towards the levels under $58,000, it would seem possible that this profit-taking push from these normally-resolute investors was at least in part behind the crash. Another indicator, the Bitcoin Spent Output Age Bands (SOAB), has revealed the breakdown of these LTH transactions. From the chart, it’s apparent that the most active LTH segment during this selloff was the 5-year to 7-year group, meaning that most of the coins sold were previously dormant between 5 and 7 years ago. Related Reading: Crypto Analyst Says Next Bitcoin Target Is $78,700 If BTC Breaks This Resistance It’s hard to say why these old entities have suddenly decided to sell after sitting out a whole cycle, but if this is the start of a selling spree from them, then things might get even worse for Bitcoin. BTC Price Bitcoin had very briefly slipped under the $57,000 level during the latest crash, but the asset appears to have made some recovery since then, as it’s back at $57,700. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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Retail Losing Interest In Bitcoin? Volume Plunges 30%

On-chain data shows the Bitcoin transfer volume of retail investors has seen a sharp decline recently, a sign that this group may be losing interest. Bitcoin Volume For Retail-Sized Transactions Has Plunged Recently As explained by CrypoQuant author Axel Adler Jr in a new post on X, the total BTC transfer volume for transactions valued [...]

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Bitcoin Slips Under $64,000: Heres Where The Next Support Is

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021. Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been [...]

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Dogecoin Plunges 11%, But This On-Chain Cushion Could End Decline

Dogecoin has observed a plummet of 11% over the past week, but this decline may not continue further, as DOGE is now just above a major on-chain support block. Dogecoin Is Now Just Above A Major On-Chain Demand Zone According to data from the market intelligence platform IntoTheBlock, DOGE is currently above a zone of significant on-chain demand. In on-chain analysis, “demand zones” refer to price ranges in which many investors buy their coins. Related Reading: Solana Set For A Major 53% Price Move, Analyst Reveals Why These zones are determined using blockchain data; the average price at which an address receives deposits is considered its cost basis. Below is a chart showing how the Dogecoin price levels near the current one are based on how many addresses share their cost basis with them. In the graph, the size of the dots corresponds to the number of addresses that acquired their coins within the respective range. It would appear that the $0.096 to $0.139 range currently looks to be the largest Dogecoin price range in terms of this metric. More specifically, 409,330 addresses acquired a total of 45 billion DOGE inside this range. Now, what’s the relevance of this demand zone, or any other one, for that matter? Generally, the cost basis is an important level for any investor, so they may be more prone to show some reaction when the spot price of the cryptocurrency retests it. A few investors showing this reaction would naturally not be relevant for the broader market. Still, if many of them share their cost basis inside the same narrow range, then a retest could produce a large reaction for the price to feel its effects. The demand zone around the average price of $0.115 had many addresses acquire their coins there, so its retest could be significant for the memecoin. As the current Dogecoin price is above this range, these investors who bought inside the range would be sitting on some profits. Historically, such demand zones below the price have acted as points of support for the cryptocurrency. This is because investor psychology tends to work out, so these holders who were in profits before the retest may believe the price would go up again so they could decide to buy more of the asset. On the other hand, investors in the red before the retest can fuel the cryptocurrency’s resistance as they sell in fear that the price will fall again. “On the upside, DOGE may face resistance around the $0.16 level, where 20 billion DOGE is presently held at a loss,” notes IntoTheBlock. Related Reading: Why Is Bitcoin Stagnant Despite ETF Inflows? Report Answers It remains to be seen whether the on-chain demand zone below would help stop the memecoin’s decline if its price drops enough to retest it. DOGE Price The past week has been a bad time for Dogecoin investors as the asset’s price has crashed around 11%. Following this drawdown, DOGE is now trading around $0.142. Featured image from iStock.com, IntoTheBlock.com, chart from TradingView.com

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XRP Forms On-Chain Signal That Led To 16% Crash Last Time

On-chain data shows that many old coins have moved on the XRP network recently, a sign that proved to be bearish for the coin last time. XRP Age Consumed Metric Has Registered A Large Spike According to data from the on-chain analytics firm Santiment, XRP has just observed a large movement of dormant coins similar [...]

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Bitcoin Greed No More: Sentiment Back At Neutral After $57,000 Plunge

Data shows that Bitcoin sentiment has cooled off to neutral from greed following the asset’s latest plunge to the $57,000 level. Bitcoin Fear & Greed Index Has Returned To Neutral Levels The “Fear & Greed Index” is an indicator created by Alternative that shows the average sentiment among investors in the Bitcoin and wider cryptocurrency market. This index estimates sentiment by considering five factors: volatility, trading volume, social media data, market cap dominance, and Google Trends. Related Reading: Bitcoin To $92,190: Crypto Analyst Reveals Path To ATH Target The metric uses a scale that runs from zero to 100 to represent this average sentiment. All values under 46 suggest that investors are fearful, while those above 54 imply a greedy market. The zone between these two cutoffs naturally corresponds to the territory of neutral mentality. Now, here is what the Bitcoin sentiment looks like right now, according to the Fear & Greed Index: The value of the metric appears to be 54 at the moment | Source: Alternative As displayed above, the Bitcoin Fear & Greed Index is at a value of 54, implying that investors share a neutral sentiment currently. However, the neutrality is only just, as the metric is right at the boundary of the greed region. This is a significant departure from yesterday’s sentiment: 67. The chart below shows how the indicator’s value has changed recently. The trend in the Fear & Greed Index over the past year | Source: Alternative As the graph shows, the Bitcoin Fear & Greed Index has been declining recently. For most of February and March, as well as the first half of April, the indicator was in or near a special zone called extreme greed. The market assumes this sentiment at values above 75. As the asset price struggled recently, the mentality cooled off from this extreme zone and entered the normal greed region. With the latest crash in BTC, the index has seen a sharp plunge, now exiting out of greed altogether. Historically, cryptocurrency has tended to move against the majority’s expectations. The stronger this expectation, the higher the probability of such a contrary move. This expectation is considered the strongest in extreme sentiment zones, as well as extreme fear and greed. As such, major bottoms and tops have often occurred in these territories. Related Reading: Bitcoin Dominance: Traders Preferring The OG To Dogecoin & Other Altcoins The all-time high (ATH) price last month, which continues to be the top of the rally so far, also occurred alongside extreme values of the Bitcoin Fear & Greed Index. With the sentiment now cooled to neutral, some investors may be watching for a fall into fear. This is natural because a rebound would become more probable the worse the sentiment gets now. BTC Price During Bitcoin’s latest plunge, its price briefly slipped below $57,000 before surging back to $57,300. Looks like the price of the asset has registered a sharp drop over the past two days | Source: BTCUSD on TradingView Featured image from Kanchanara on Unsplash.com, Alternative.me, chart from TradingView.com

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Bitcoin and Stocks Plunge as 90-Day Tariff Pause is Revealed as Fake News: BTC Whales Continue Accumulating

Bitcoin, along with other stocks, experienced a significant decline following the announcement of a 90-day tariff pause, which many are calling “fake news.” Despite the uncertainty in the market, BTC whales continue to accumulate more cryptocurrency. The overall sentiment in the markets has been turbulent, with investors reacting to the news of a temporary halt [...]

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Bitcoin Plunges by 8%, US Markets Lose $2 Trillion Will Traders See an Overbought Rebound?

Bitcoin experienced an 8% decrease in value, leading to a $2 trillion loss in the US markets. Traders are now wondering if an oversold bounce can be expected amidst the current market conditions. The sudden drop in Bitcoin’s price has had a ripple effect on the overall financial markets in the United States. This significant [...]

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69% Of PEPE Holders Left In Profits After 26% Plunge

On-chain data shows the percentage of the PEPE investors currently in the green has fallen to 69% after the 26% plunge the memecoin has seen in the past week. 69% Of All PEPE Addresses Are Carrying Some Gains Right Now In a new post on X, the market intelligence platform IntoTheBlock has posted an update on how the investor profitability is looking for the memecoin PEPE currently. Related Reading: Bitcoin Long-Term Holders Slow Down After 700,000 BTC Selloff, Reversal Sign? The analytics firm’s metric gauges whether a holder is in profit or not by reviewing their address’s on-chain history. Based on when the wallet acquired the coins, the indicator calculates the investor’s average cost basis using the spot price of the asset at the time of those purchases. If the current spot value of the cryptocurrency is higher than this average cost basis for any address, then that particular investor is carrying net gains currently. IntoTheBlock categorizes such addresses to be “in the money.” Similarly, investors with a cost basis higher than the latest price are considered “out of the money.” Naturally, the two values being exactly equal would suggest the holder is just breaking even on their investment or is “at the money.” Now, here is the data shared by the analytics firm that shows how this investor breakdown looks like for PEPE at the moment: The profit-loss status of the investors owning the memecoin | Source: IntoTheBlock on X As is visible above, 69% of the total addresses holding PEPE have their cost basis higher than the current spot price of the coin, while 27% are in losses. 4% of the investors are sitting on their cost basis right now. This profitability ratio isn’t that high, as, for example, 89% of Bitcoin investors are currently in profit, according to IntoTheBlock data. The reason behind the lower profits for the memecoin is that its price has seen a steep drawdown recently. Historically, the addresses in the green have been more likely to sell to harvest their gains. As such, when the market profit-loss balance is overwhelmingly towards profits, a mass selloff can occur. Naturally, this means the chances of a top being hit increase with increasing investor profits. However, a low percentage of investors being in profits can be conducive to bottoms forming, as profit-selling exhausts at these levels. Related Reading: Bitcoin Has Next Major Demand Zone At $56,000: Brace For Impact? At present, PEPE is neither dominated by green investors nor red ones. In bull runs, however, profitability levels generally remain higher, so any cooldown can help prices rebound. Thus, the fact that investor profitability has returned to the 69% level for the memecoin could be a sign that a bottom is close if the bullish regime has to continue. PEPE Price PEPE has returned to the $0.0000050913 mark after having declined more than 26% over the last seven days. The chart below shows the memecoin’s performance over the past month. Looks like the price of the coin has witnessed a steep decline over the last few days | Source: PEPEUSD on TradingView Featured image from Shutterstock.com, IntoTheBlock.com, chart from TradingView.com

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Bitcoin Plunges Under $63,000, Heres Where Next On-Chain Support Is

Bitcoin has deepened its decline in the past day with its price now slipping below $63,000. Here’s where the next potential support is, according to on-chain data. Bitcoin Could Find Support At These Price Levels In a new post on X, analyst Ali has discussed how the Bitcoin support and resistance levels are looking like right now based on on-chain data from Glassnode. The indicator of relevance here is the “UTXO Realized Price Distribution” (URPD), which, in short, tells us about the amount of coins (or more precisely, UTXOs) that were last purchased at any given price level that the asset has visited in its history so far. Related Reading: Bitcoin Has Undergone This Bearish Structure Change, Analyst Explains Below is the chart shared by the analyst that shows the data for this distribution for the price levels around the recent spot value of the cryptocurrency: Looks like the $72,880 mark is the level with the richest amount of coins at the moment | Source: @ali_charts on X From the graph, it’s visible that there are a few price levels not far from the current one that particularly stands out in terms of the amount of buying that took place at them. In on-chain analysis, the potential for any level to act as support or resistance is based on the total number of coins that have their cost basis at the level in question. Levels thick with coins that are situated under the current price would be probable to act as points of support, while those above the spot value could prove to be resistance walls. As is apparent from the graph, the $61,100, $56,685, and $51,530 levels are the ones below the current price that hold the cost basis of a notable amount of the supply right now. Naturally, this means that should the decline continue further, these would be the levels to watch for a possible rebound. Two levels above, however, are even larger than all three of these support levels: the cost basis centers around $66,990 and $72,880. Interestingly, the latter of these is the single largest acquisition level out of all the price levels listed in the chart, implying that a large amount of FOMO buying has occurred at the asset’s all-time high levels. In the scenario that Bitcoin regains its upward momentum, these levels of high cost basis population would be where the asset could be most probable to find some trouble. Now, as for why acquisition centers are considered relevant for support and resistance in on-chain analysis is the fact that investors are likely to show some kind of reaction when a retest of their cost basis takes place. Related Reading: Bitcoin Sentiment Cools Off, Price Rebound Soon? When such a retest is from above, the holders may decide to accumulate more, believing that the price will go up again in the future. On the other hand, they may sell instead if the retest is from below, as they may think exiting at break-even is better than risking another drop. A large number of coins having their cost basis at the same level means a potentially large degree of one of these reactions happening and, hence, a strong support or resistance effect on the price. BTC Price Bitcoin is inching closer to the first major on-chain support level as it has now dropped to $62,700. The price of the asset appears to have plummeted over the last few days | Source: BTCUSD on TradingView Featured image from Shutterstock.com, Glassnode.com, chart from TradingView.com

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Bitcoin To $53,200? Why History Says Its Possible

As Bitcoin drops below $68,000, history suggests this correction is rather tame for bull markets, as plunges to this deep on-chain level have been the norm. Bitcoin Short-Term Holder Realized Price Is Currently Around $53,200 As pointed out by CryptoQuant Netherlands community manager Maartunn in a post on X, BTC still has a decent margin over the realized price of the short-term holders. The “realized price” is an on-chain metric that keeps track of the average price at which the Bitcoin investors acquired their coins. The indicator calculates this value by going through the transaction history of each coin and assuming that the last transfer of it was the last time it was purchased (that is, the price at the time is its current cost basis). Related Reading: Why Is Bitcoin Price Down Today? 3 Key Reasons When the spot value of the cryptocurrency dips below the realized price, it means that the average investor is now in a state of loss. On the other hand, a break above implies the market as a whole has entered into net profits. In the context of the current discussion, the realized price for only a particular segment of the investors is of interest: the “short-term holders” (STHs). The STHs include all the investors who bought their coins within the past 155 days. Now, here is a chart that shows the trend in the Bitcoin realized price specifically for this cohort: Looks like the value of the metric has been trending up recently | Source: @JA_Maartun on X As displayed in the above graph, the Bitcoin STH realized price has shot up recently as the price of the asset has gone up. This makes sense, as this group includes the most recent buyers, who would continuously be buying at higher prices in an uptrend, thus raising their average cost basis. At present, this cohort’s realized price is about $53,200. During the past day, BTC has seen a sharp drop that has taken its price below the $68,000 mark, but clearly, the STHs would still be in high profits even after this drawdown. “In previous bull markets, the average cost basis of short-term holders was fully reset multiple times,” explains Maartunn. This trend is most prominent in the data for the 2017 bull run when the price retested this level several times. An interesting pattern that has been held is that these retests of the level during bull trends have generally resulted in the cryptocurrency finding support and turning itself back around. The explanation for this trend may lie in the fickle nature of the STHs. The cost basis is an important level for these investors, and when a retest of it happens, they panic and show some reaction. Related Reading: Brace For Impact: MicroStrategy Is Planning Another $500 Million Bitcoin Purchase During uptrends, these holders are more likely to buy more when a retest of their cost basis occurs since they may think that the same price levels that were profitable earlier will be so again in the near future. Naturally, it’s not a certainty that Bitcoin would also end up retesting this level in this bull market. Still, a correction might reach close to it if the historical precedent is anything to go by. BTC Price Following its 7% drop in the past day, Bitcoin is trading at around $67,700. The price of the coin has registered a sharp drop over the last 24 hours | Source: BTCUSD on TradingView Featured image from Maxim Hopman on Unsplash.com, CryptoQuant.com, chart from TradingView.com

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Bitcoin Hangs At $26,200: Why This Is A Crucial Support Level

Bitcoin has plunged during the last 24 hours and now finds itself at the $26,200 level. Here’s why this level is important for the asset. Bitcoin 200 WMA & 111 DMA Are Both At $26,200 Right Now In a new tweet, the analytics firm Glassnode has talked about how the different technical pricing models for Bitcoin may be interacting with the asset’s price currently. There are four relevant technical pricing models here, and each of them is based on different moving averages (MAs) for the cryptocurrency. An MA is a tool that finds the average of any given quantity over a specified region, and as its name implies, it moves with time and changes its value according to changes in said quantity. MAs, when taken over long ranges, can smooth out the curve of the quantity and remove short-term fluctuations from the data. This has made them useful analytical tools since they can make studying long-term trends easier. In the context of the current topic, the relevant MAs for Bitcoin are 111-day MA, 200-week MA, 365-day MA, and 200-day MA. The first of these, the 111-day MA, is called the Pi Cycle indicator, and it generally finds useful in identifying short to mid-term momentum in the asset’s value. Related Reading: Bitcoin Sell-Side Risk Ratio Nears All-Time Lows, Big Move Soon? The 200-week MA is used for finding the baseline momentum of a BTC cycle as 200 weeks are equal to almost 4 years, which is about what the length of BTC cycles in the popular sense is. Here is a chart that shows the trend in these different Bitcoin technical pricing models over the past year: Looks like pairs of models have come together in phase in recent weeks | Source: Glassnode on Twitter As shown in the above graph, these different Bitcoin pricing models have taken turns in providing support and resistance to the price during different periods of the cycle. For example, the 111-day MA turned into support recently, as the price rebounded off this level back during the plunge in March of this year, as can be seen in the chart. The 111-day and 200-week MAs have recently come into phase, as both their values stand at $26,200 right now. This is the level that Bitcoin has been finding support at in recent days, so it would appear that the base formed by these lines may be helping the price currently. Related Reading: Sharks & Whales Accumulate Stablecoins, Why This Could Be Bullish For Bitcoin Glassnode notes that if a break below this region of support takes place, the next levels of interest can be the 365-day and 200-day MAs. The former of these simply represent the yearly average price, while the latter metric is called the Mayer Multiple (MM). The MM has historically been associated with the transition point between bullish and bearish trends for the cryptocurrency. When the 111-day MA provided support to the price back in March, the metric had been in phase with the MM. From the graph, it’s visible that the 365-day and 200-day MAs have also interestingly found confluence recently, as their current values are $22,300 and $22,600, respectively. This would imply that between $22,300 and $22,600 may be the next major support area for the asset. BTC Price At the time of writing, Bitcoin is trading around $26,200, down 4% in the last week. BTC has plunged during the past day | Source: BTCUSD on TradingView Featured image from iStock.com, charts from TradingView.com, Glassnode.com

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Bitcoin Plunge To $29,200 Sends 5.9% Of Supply Into Loss

On-chain data shows an additional 5.9% of the total Bitcoin supply has entered into losses as the cryptocurrency’s price has plummeted to $29,200 today. Bitcoin Supply In Profit Has Declined To 70.4% After Today’s Price Plunge According to data from the on-chain analytics firm Glassnode, 1.11 million BTC has gone underwater with the latest asset value drop. The relevant indicator here is the “percent supply in profit,” which tells us about the percentage of the total Bitcoin supply currently carrying some profit. Related Reading: Bitcoin Cash Price Could Restart Rally To $300 If It Breaks This Resistance This metric works by going through the on-chain history of each coin in circulation to see what price it was previously moved at on the network. If this last transfer price for any coin were less than the current spot price of the asset, then that particular coin would be holding an unrealized gain currently. The percent supply in profit adds up all such coins and calculates what part of the total supply they make up for. A counterpart indicator called the “percent supply in loss” keeps track of the opposite type of tokens, and its value can be simply found by subtracting the supply in profit from 100. Now, here is a chart that shows the trend in the Bitcoin percent supply in profit over the past day or so: The value of the indicator seems to have taken a hit in recent hours | Source: Glassnode on Twitter As displayed in the above graph, the Bitcoin percent supply in profit had been floating around 76.3% when the cryptocurrency price was above $30,200 yesterday. With the plunge to $29,200 over the past day, though, the metric has also taken a sharp hit, as only 70.4% of the total circulating supply is holding some unrealized profit now. Historically, whenever the profit in supply has crossed the 75% mark, declines in the price have become more probable. This is because investors become more likely to sell the more profits they hold. The latest tumble in the asset may have come because of this, as the investors who had been sitting on profits may have buckled and sold their coins to harvest their gains. As the metric has cooled down well below the 75% mark now, it’s possible that this may be it for the correction. Before the plunge to $29,200, Bitcoin had been consolidating above $30,000 since many weeks ago. As buying and selling took place in this sideways trend, many investors slowly gained their cost basis at or above this level. Related Reading: Bitcoin (BTC) Address Dormant For More Than 11 Years Moves $31 Million In BTC Due to this reason, the drop below this level has resulted in a significant part of the supply going into loss. More specifically, around 1.11 million BTC (equivalent to 5.9% of the total supply) has entered into the red. BTC Price At the time of writing, Bitcoin is trading around $29,100, down 4% in the last week. BTC has seen a sharp drop during the last 24 hours | Source: BTCUSD on TradingView Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Glassnode.com

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What caused the recent Avalanche AVAX price plunge?

Avalanche AVAX price experienced a decline in late March 22. The token dropped from $17.89 to about $16.5 in less than 3 hours triggering shockwaves among AVAX investors seeing that the token has been doing quite well recently. AVAX has however recovered from the fall although it is yet to reclaim its $17.89 price level. …

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LaunchZone (LZ) price plunges 82% after a $700K exploit | Invezz

Little-known BNB Chain-based decentralized finance (DeFi) protocol LaunchZone has been exploited and $700,000 worth of funds stolen. The news has sent the protocol’s native token, LZ, plunging by more than 82% at press time. According to sources, the funds were drained from LaunchZone’s liquidity pool. 80% of funds stolen Although details remain scarce, reports show ...

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Silvergate Capital shares plunge nearly 50% amid crypto-related negativity | Invezz

Silvergate Capital Corp (NYSE: SI) shares dropped sharply on Thursday, with intraday declines as of midday more than 47% to see the crypto-focused bank’s stock trade around $11.52. Silvergate shares fall as investors withdraw $8 billion in deposits Losses for crypto-friendly bank’s shares followed the company’s fourth-quarter report before markets opened. Per the update, Silvergate ... Read more

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End Of Litecoin Rally? LTC Plunges 7% In Last 24 Hours

Litecoin has observed a plunge of more than 7% in the last 24 hours, suggesting that the coin’s bullish momentum may have come to an end. Litecoin Drops Hard TodayS But Is Up 20% In The Last Month While the rest of the crypto market was struggling, LTC enjoyed some sharp bullish momentum in the third leg of November, leading some to believe the “pre-halving rally” had begun for the crypto. But the first half of December proved disappointing as the coin mostly consolidated, and now in the last two days, the trend seems to have completely reversed as Litecoin has been rapidly going down instead. At the time of writing, LTC is trading around $69, down 7% in the last 24 hours. The below chart shows how the asset’s price has changed in recent months. The rise in the coin's value during the last three months | Source: LTCUSD on TradingView As the graph displays, Litecoin was initially on the way up in early November and crossed $70. But then the FTX crash struck the market, and the coin’s price plummeted to a low of less than $50. However, unlike other big cryptocurrencies like Bitcoin and Ethereum, LTC quickly found its feet and started on a steady recovery. In the third part of November, the coin rapidly blew up and shattered the peak seen just before the FTX debacle, ending the month in double-digit gains while the rest of the sector was deep in the red. Related Reading: Why This Bitcoin Bearish Divergence Could Spell Doom For BTC Rally LTC was consolidating this month after setting a peak above $80, but holders were optimistic as the coin’s halving, an event where block production would be cut in half, is scheduled to take place next year. Historically, halvings have usually had a bullish effect on the prices of cryptocurrencies due to supply-demand dynamics, as supply production is reduced by 50% following them. Related Reading: Ethereum Active Addresses At Highest Since May 2021, Good News For ETH? In the last couple of days, LTC has sharply plunged instead and has retreated below the pre-FTX peak. This could mean that the coin may have lost its recent bullish steam and that this may not have been the halving buildup run that some thought it would be. Though, even after this decline, LTC investors are still 20% in profit over the last month. LTC Slips Further Down The Market Cap List During the recent consolidation, LTC lost its spot as the 12th largest crypto by market cap to Dai (DAI), and now with this latest drawdown, the coin has dropped even lower to 14th as Tron (TRX) takes over. LTC market cap continues to drop | Source: CoinMarketCap Still, when compared to October’s end when Litecoin was 20th on the list, the coin’s current position is a major improvement.

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