Evaluating if Bitcoin [BTC] can see a leg-down to $9k mark
Bitcoin’s [BTC] struggle to surpass the current resistance level (around $21k) continue to see new dates. BTC made a few attempts to clear the $21,650 resistance but failed. However, there might be more pain coming its way for the largest crypto.
The certainity of pain doesn’t end in the shorter frame and this can be attributed to the factors given below.
Firstly, BTC seems to be losing its dominance as traders showcased more interest in Ethereum [ETH] and other altcoins. The king coin slumped since briefly jumping back above $25k on 14 August. Following this, BTC recorded a low transaction ratio at a loss. Mainly because traders lost interest and exited the network.
As per the analytic firm Santiment, more than twice as many BTC transactions were at a loss vs. at profit this week. Something that can be seen in the graph below.
Source: Santiment
Even the NUPL metric declined below zero during the first half of the day. This could be a sign that the crypto may be approaching a bottom. It means the Bitcoin market as a whole held an unrealized loss.
Well, the Bitcoin “net unrealized profit and loss” (NUPL) is an indicator that can be defined as the difference between the market cap and the realized cap, divided by the market cap.
Source: Glassnode
Notably, the Bitcoin NUPL sharply decreased in value this year (YTD) as the price of the crypto observed a slump. But at press time, BTC did see a slight uptick above the zero mark. Thus, signaling ‘Hope’ amidst fear.
But is that significant enough to keep the token afloat? Maybe not as bears took control, evident from CoinGlass’ data.
Source: CoinGlass
Moreover, Bitcoin’s steep correction failed to break the $25,000 resistance on 15 August.
This even surprised the BTC bulls because only 12%
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