After prolonged sideways movement around the $30,000 mark in recent weeks, the Bitcoin price had finally broken out with a weekly decline of 11%. The sharp fall in price on August 18, 2023 drastically impacted the fraction of individual BTC holders in profit. Does this mean the crypto market is gradually dropping into the bear market territory?
Bitcoin Addresses In Profit: What Changed
While the recent developments around spot ETF filings raised expectations of investors, the news had only sustained the sideways movement, starting July 2023. Hence, the sentiment was there to be shaken out with macroeconomic and broader financial market moves like the SpaceX sale of Bitcoin holdings worth $373 million. The Bitcoin price drop on August 18, 2023 coincided with the sharp decline in values of the Nasdaq Composite Index and the S&P 500 Index. As a result, a huge chunk of traders turned less profitable or ran into unrealized losses, as per Glassnode data.
When viewed in terms of the 7-day moving average, the number of BTC addresses clearly saw a significant drop, with the count reaching a one month low of 32,506,617 addresses.
📉 #Bitcoin $BTC Number of Addresses in Profit (7d MA) just reached a 1-month low of 32,506,617.637
— glassnode alerts (@glassnodealerts) August 19, 2023
Further Fall Imminent?
Whether or not the cryptocurrency continues to remain in the correction phase remains to be seen. Earlier, CoinGape reported that at the current range, BTC holds support levels at $25000 and then at $21500, which means traders could likely go through fear, uncertainty and doubt (FUD) over shorting the trades. However, any positive news around the spot Bitcoin ETFs in the first week of September could likely reinstate the bullish environment.
Between September 1 to September 6, 2023, the U.S. Securities and Exchange Commission (SEC) is expected to deliver an update or decision regarding the various spot ETF applications from the likes of Blackrock and Wisdomtree. Does this mean the BTC price may not pick up before the first week of September 2023?