Bitcoin (BTC), the oldest cryptocurrency, has been making waves owing to its surge beyond $52,000. However, the Bitcoin price struggled to sustain that level, being caught in the rebound and pullback frenzy. Moreover, fresh addresses that bought BTC during the rally have incurred significant losses, stirring speculations of a massive sell-off.

Over 840,000 New Bitcoin Addresses Suffer Losses

According to a post by Lookonchain on X, data from Into The Block indicates that nearly 848,390 addresses had purchased around 481,710 BTC, equivalent to $25 billion, recently. The purchases have been made at an average price of $52,125 amid the Bitcoin price rally. However, the BTC price slipped significantly thereafter.

Hence, these addresses are experiencing losses currently. This could potentially lead to increased selling pressure once their positions breakeven with a sell-off worth in billions. In such a situation, a major Bitcoin correction could ensue, pushing its price lower than $50,000. This aligns with crypto analyst Michaël van de Poppe’s recent analysis.

The crypto analyst suggested that the Bitcoin price would peak between $53,000 and $58,000 before being hit by a 20-40% pullback. However, the current scenario indicates a potential correction before the highs denoted by Poppe. On the other hand, Bitcoin has currently registered minimal liquidations.

According to Coinglass data, $26.06 million worth of BTC holdings were liquidated in the last 24 hours. Out of this, long positions accounted for the majority of liquidations with $20.39 million withdrawals. The drop in liquidation could be attributed to the Bitcoin price rebound above $52,000.

BTC Price Update

At the time of writing, the Bitcoin price was down by 0.54%, settling at $52,090.24 on Tuesday, February 20. On the contrary, the trading volume for BTC soared 20.25% to $22.46 billion. Whilst, the crypto boasted a gigantic market capitalization of $1.01 trillion.

Amid speculations of an impending sell-off TradingView crowned Bitcoin with a “Strong Buy” indicator. Currently, the Bitcoin price is substantially higher than the 50-day and 100-day EMAs of 45543 and 42456, respectively. This suggests a strong bullish sentiment amid the rebound and pullback spree.

However, the fresh BTC addresses that acquired their holdings at a premium could incur further losses in case of a dip. Hence, the probability of a sell-off remains firm. On the contrary, Poppe has also suggested a long-term target of $150,000 for Bitcoin, suggesting investors to consider long positions to realize returns.

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The post New Bitcoin Addresses Holding $25 Bln BTC Incur Losses, Major Selloff Ahead? appeared first on CoinGape.

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Filed under: News - @ February 20, 2024 11:21 am