Bitcoin’s struggled to overcome the immediate resistance mark (around $21,000) still sees new dates. The bellwether crypto made some trials to overcome the hurdle at $21,650 but couldn’t succeed. Nevertheless, there could be more pain for the token in the upcoming sessions or days.
Pain & Suffering
The worry about pain does not end within short timeframes, possibly due to the following factors. First and foremost, Bitcoin appears to lose its dominance as market players show increased interest in alternative coins such as Ethereum.
Bitcoin noted declines since slightly umping beyond $25K on August 14. Such developments saw the crypto presenting transaction ratio loss, primarily since investors lost interest & excitement in the blockchain.
According to analytic company Santiment, more than 50% of Bitcoin transactions remains at a loss versus profit this week. Furthermore, the NUPL metric slumped beneath zero over the past day.
That might signal that the asset could be nearing a bottom. That means the entire BTC market exhibited an unrealized loss.
Meantime, what’s NUPL (Net unrealized profit & loss? It’s an indicator that showcases the realized cap and market cap difference divided by market capitalization. Bitcoin’s NUPL witnessed a swift decline in YTD as Bitcoin prices maintained lows.
Nevertheless, it experienced a brief upsurge beyond the zero level at press time. That signals hope amid fear. However, is that enough to maintain the token up?
Probably not as bearishness dominate, according to Coinglass data. Furthermore, BTC’s swift uptrend failed to overcome the resistance at $25K on August 15.
That even astonished bulls as investors executed only 12% of buy call options for monthly expiry beyond $22K. Therefore, Bitcoin bulls remained in a lucrative spot, despite placing fewer bets. While publishing this blog, Bitcoin traded beneath the $22,000 level.
Various crypto analysts have been forecasting a winter in the cryptocurrency market. One of the BTC’s leading critics, Peter Schiff, predicted an imminent bloodbath for the dominant crypto. Another on-chain analyst, @Root, stated that Bitcoin might see massive plummets toward $9K.
Remember, everything is possible in this space. Market conditions remain bearish, suggesting more downside. Nevertheless, time remains our essential tool.