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Bitcoin Users Purchased 3.45% of BTC Circulating Supply at $30.2K

Published 11/07/2023, 14:50
Updated 11/07/2023, 15:15
© Reuters.  Bitcoin Users Purchased 3.45% of BTC Circulating Supply at $30.2K
BTC/USD
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  • Around 592,000 BTC have purchasing prices of $30,200.
  • Small price fluctuations could flip 3.45% of BTC circulating supply into profit or loss.
  • About 523,000 BTC was purchased for $26,800, equivalent to 3.05% of BTC circulating supply.

Data from Glassnode, the onchain and financial metrics platform, shows that around 592,000 Bitcoins, equivalent to 3.45% of the circulating supply, have purchasing prices of $30,200. This suggests small price fluctuations in either direction could send 3.45% of the circulating supply into a position of profit or loss, respectively.

Glassnode’s tweet also reported that 3.71% of Bitcoin’s circulating supply, equivalent to 637,000 BTC, was purchased for $16,500, and 3.05%, amounting to 523,000 BTC was purchased for $26,800.

Investors use purchase-level information provided by Glassnode to study the markets. It helps in understanding the overall mood of the Bitcoin market, providing clues to the prevailing investors’ sentiment.

Knowing the price level where many users purchased Bitcoins is a valid indicator that preempts investors’ behavior in the Bitcoin market. Combined with other market indicators, it can show if holders would hang onto their investments for long, or embark on a selloff.

Investors also use the information about where Bitcoins were purchased to predict the potential stop-loss areas. Those are areas that could attract significant liquidation volumes during market volatility. The information would help them react quickly, especially in volatile periods.

Bitcoin entered a sideways trend after a significant rally that ended three weeks ago. With the rally, the flagship cryptocurrency attained a seasonal high of $31,500 and a local low of $29,519. Currently, Bitcoin’s price is trading between these two levels.

BTC/USD Daily Chart on TradingView

With many users purchasing BTC at $30,200, Bitcoin investors expect this area to hold forth unless something significant pushes the price lower. Also, as Glassnode indicated, the not-so-far-away $26,800 price level is loaded with many purchases. That region signifies strong support where the buyers would not want prices to fall below.

The post Bitcoin Users Purchased 3.45% of BTC Circulating Supply at $30.2K appeared first on Coin Edition.

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