Very Few Bitcoin Addresses Are Sitting Underwater At Current Price

On-chain data shows less than 1% of all Bitcoin holders are still in loss following the surge in the asset's price above the $100,000 level.

Less than 1% of all Bitcoin (BTC) holders are still sitting at a loss following the recent surge in the asset’s price above the $100,000 level.

On-chain data shows that the vast majority of BTC addresses are now deep “in the money,” having purchased their coins at an average price below the current spot rate.

Bitcoin Addresses Sitting Underwater At Current Price

As Bitcoin trades very close to its all-time high, it is to be expected that few investors are left sitting at a loss.

In a new post, market intelligence platform IntoTheBlock discussed the profit-loss distribution of the Bitcoin userbase after the recovery run that the cryptocurrency has seen.

“Only 380K addresses (less than 1%) bought BTC above the current price, and they're now sitting underwater,” noted the analytics firm.

Below is a chart shared by IntoTheBlock, showing the price ranges within which these few addresses still “underwater” bought their coins:

Bitcoin Holder Cost Basis Levels

In the graph, the size of the dot corresponds to the amount of BTC that the holders last purchased within the corresponding price range.

As you can see, there are only very small dots associated with the levels ahead of the current spot price, which now hovers around the $98,000 mark.

The ranges ahead of the present level of BTC contain the cost basis of around 380,000 addresses. This may sound like a lot, but given the sheer size of the BTC userbase, this number makes up for less than 1% of all holders of the asset.

Holder cost basis levels are considered important in on-chain analysis due to the fact that investors are more prone to making moves whenever their profit-loss status is about to flip.

For instance, holders who were in loss prior to the retest (that is, when the retest takes place from below) might respond by selling, as they could fear the price would go down again in the future, making this potentially their only opportunity in the near term to get their money back.

This selling can visibly affect Bitcoin if the level being retested contains the acquisition level of a large amount of investors. At present, though, the ranges ahead of the asset are clearly quite thin with addresses, meaning they should likely offer little in the way of resistance from such panic sellers.

Bitcoin Price Analysis: What To Expect Next?

At the time of writing, Bitcoin trades at $97,900, showing a 3% gain over the past week and a 10% loss in the last 30 days.

After failing to hold onto the $100,000 level, BTC has been consolidating within a narrow range as bulls and bears both prepare for the next directional move.

The cryptocurrency has shown resilience at the $96,000 support, but whether it can continue making higher highs remains to be seen, especially with almost all investors now sitting in gains.

Some of these profitable holders may be looking to cash out a portion of their holdings, which could introduce some selling pressure in the near term.