Cowardly Bitcoin Owners Sell Coins at a Loss

An analyst using the pseudonym Checkonchain said that short-term Bitcoin- investors got scared and started recording losses instead of profits.

The expert published a chart of the change in the profit ratio from buying BTC, which shows that in the first half of July, people who had been storing BTC for less than 155 days were actively fixing profits, which is reflected in the upward movement of the green line. But after the coin rate reached a historical maximum of $14 on July 123,236, the amount of realized profit began to decline, and recently digital asset owners began selling coins at a loss, so the ratio fell below 1 into the red zone.

Bitcoin price fluctuations (black line) and BTC profit margin (green and red)

What we would like to see now is a sharp drop into the red zone (to get rid of weak hands) and then a rapid return to the green area. This would mean that the bullish trend continues. The last time a similar situation occurred was in June, when the price of Bitcoin fell below $ 100,000. The downward trend did not last long, — Checkonchain wrote.

While short-term investors are panicking and selling coins bought at prices above $115,000, incurring losses, the employees of the research company Glassnode, like Checkonchain, are optimistic about the future of Bitcoin. According to them, after a period of accumulation, the cryptocurrency rate will break through the resistance barrier of $116,000 and go up again.

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