Is Crypto’s Downfall Over? What Does the Data Say?

The number of addresses that are in profit or loss is an important metric for Bitcoin analysts. It gives a rough estimate of how traders have been affected by recent bearish conditions. It can also be used to assess the impact of selling pressure.

According to a recent Glassnode report, the number of Bitcoin addresses at a loss has reached a new monthly high. This means that Bitcoin’s breakeven point is above the current level, confirming the short-term focus. Meanwhile, the BTC supply, which has been active for over 10 years, has reached a new ATH level. In the short term, the decline may have ended according to the above ATH signal.

When we dug deeper, we saw the number of lost addresses rise to a new monthly high. These findings do a great job of detecting the magnitude of the bearish impact on BTC holders. However, these findings do not highlight the aftermath of the collapse. Perhaps the assessment of whale activity on Glassnode can provide insight into what the market’s next move will be.

Addresses holding 1,000 and over 10,000 BTC dropped significantly. This confirms that Bitcoin whales contributed to the selling pressure from August 14-17.

When it comes to accumulation, Bitcoin’s exchange flow data shows that the amount of BTC flowing out of exchanges outweighs the inflows. The net flow of coins from exchanges to private wallets is a sign of accumulation. On the other hand, we saw a huge drop in open interest and along with the price, this also remained calm at the bottom. The increase in the open interest rate in the coming days may be a strong leading signal for the price to rise again.