Bitcoin's price has dropped by more than 20 percent since topping out above $10,300 in late October.
The cryptocurrency is currently trading near $8,100 and has erased nearly 75 percent of the price rise from $7,293 to $10,350 seen in the two days to Oct. 26.
Even so, 61 percent of addresses are still "in-the-money", according to Blockchain Intelligence firm IntoTheBlock. Put simply, 61 percent of addresses can sell their bitcoin holdings at a gain.
Meanwhile, 29 percent of all addresses are out-of-the-money, that is, making a loss and 9.43 percent are at-the-money (break even).
A closer look at the above tweet reveals the early buyers – the ones who bought in the range of $0 to $450 – make a small fraction of in-the-money addresses.
Meanwhile, buyers in the range of $910 to $4,164 are the biggest group of in-the-money addresses, meaning BTC has a strong bottom, as noted by IntoTheBlock. |
 
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Bitcoin Eyes Break Below $8,000
BTC: Price: $8,065 | MCAP: $145.97 Billion | 24-Hr Volume: $21.33 Billion
Trend: Bearish Bitcoin is operating on slippery grounds with the daily chart reporting a lower highs, lower lows setup. Further, key indicators like the MACD histogram and the relative strength index are reporting bearish conditions on the daily and three-day charts.
The cryptocurrency, therefore, looks set to test support of the ascending (bullish) 10-month moving average, currently at $7,714. On the way lower, BTC may find support at $7,850 (38.2 percent Fibonacci retracement of $3,122-$13,880).
The bearish mood comes at a time when the U.S. stock markets are soaring. The S&P 500 index hit record highs above $3,120 on Tuesday, having rallied for five straight weeks. BTC's decline amid the rally in the U.S. equities contradicts the narrative put forward by a few experts that the top cryptocurrency is a risk asset.
Long-term trend: Neutral
BTC tends to pick up a strong bid six months ahead of the reward halving, according to historical data. The cryptocurrency is set to undergo reward halving in May 2020. So far, however, BTC has struggled to find love.
The 100-period weekly MA sets scope for $7,520, the most likely landing pad in BTC's price action as it falters along $8,100 amid low levels of volume.
A bullish reversal could be on the table, given a drop in both volume period-to-period alongside price, as per typical volume theory, but at this stage more buyers need to enter the market on the back of positive developments in the space, lest the bulls concede a drop to the level mentioned above. Read Analysis
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Ether Hits 3.5-Week Low ETH: Price: $177 | MCAP: $19.24 Billion | 24-Hr Volume: $7.45 Billion
Short-term trend: Pullback
Ether's price dropped to $173 – the lowest level since Oct. 25 – in the last 24 hours, reinforcing the bearish view put forward by the pennant breakdown confirmed on Nov. 15.
The MACD histogram is printing deeper bars on the daily chart, indicating a strengthening of bearish momentum. Further, the 14-day relative strength index is reporting bearish conditions with a below-50 print. What's more, the 5- and 10-day averages are trending south, indicating a bearish setup.
All-in-all, ETH/USD appears on track to test deeper support at $168.50 in the short term.
Long-term trend: Neutral
The higher lows on the weekly MACD histogram indicate seller exhaustion. The outlook, therefore, is neutral.
A break above $225 is needed to invalidate the bearish lower high setup and put the bulls back in a commanding position. However, with the weekly RSI still below 50 and BTC showing signs of weakness, the probability of ether climbing $225 in the short term is low.
In fact, the cryptocurrency risks falling below $153. That would revive the long-term bearish case and open the doors for a deeper drop to $100.
The number of in-the-money ether addresses have dropped to 25 percent, according to IntoTheBlock. Investors, therefore, may feel tempted to predict that the cryptocurrency is nearing a bottom. However, details reveal the profitable 25 percent hold 46 percent of supply. So, prices could fall sharply if and when the profitable 25 percent throws in the towel.
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| | | Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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