Regardless of breaking crucial support at $20,800 and falling in, Bitcoin finally is in a recovery state and maintaining its value above the $20k physiological region for at least seven days now. Last week, this major cryptocurrency tried to arrange a comeback after a severe sell-off on August 19 but was able to only touch $21,800 before going down again.
As per certain relevant resources “Bitcoin is barely hanging on” with the coin’s customer base performance continuing to suppress. “The current Bitcoin user base performance is lacklustre at best, and that price action remains remarkably weak, even as older coin expenditure declines,” as published in a recent weekly newsletter.
“The recent sell-off was initiated after a convincing underside retest of 1.0 at a time where prices reached above $24k. Rejection from this level largely confirms weakness lay on the road ahead, as investors took the exit liquidity and spent coins around their acquisition cost basis.” Reports furthered.
Although resources are claiming that, Bitcoin traders are still not able to come out from a loss streak i.e., nearly 220M/ day in net losses. Nonetheless, the condition has improved keeping in mind the latest multi-billion capitulation events.
Traders also continue to debit their BTCs from crypto lenders, regardless of Bitcoin’s dropping values. According to the information derived by Santiment, the total sum of coins sitting on crypto lenders has dropped to only 1.74M highlighting a systematic loss of more than 40% since March 2020. “During downtrends, it is familiar to see long-term holders making up a greater percentage of overall supply held.” Santiment publishes recently.
With that made obvious, it is still plausible that the crypto industry is going through its darkest bearish conditions. Also, it is quite clear that BTC could see a stable uptick if the fundamentals turn favorable. At the time of writing, BTC was trading at the support level of $20,101 after a 0.71% increase in the past 24 hours.
Gargi Sinha is working as Senior Journalist at Confea. She has completed her Masters in Journalism from Delhi University. She has interest in crypto and blockchain technology.