Key Points
- Bitcoin’s recent rally has left 5.1 million addresses still in loss.
- Despite this, overall market sentiment for Bitcoin has shifted from bearish to positive.
Bitcoin [BTC] has seen a significant upswing in its price over the past week. Despite starting September negatively, the recent gains have managed to offset the monthly losses.
At the time of writing, BTC was trading at $63,668, marking a 9.99% increase over the past week. Additionally, on a monthly scale, it has made significant gains, surging by 6.99%.
5.1 Million BTC Addresses in Loss
Despite this recent uptick, Bitcoin still remains significantly below its recent high of $70016, recorded on the 29th of July. This sudden price movement has sparked discussion among analysts. IntoTheBlock analysts, for example, remain skeptical of the recent rally, citing 5.1 million addresses that remain underwater.
According to IntoTheBlock, despite BTC’s strong effort to break through the $63k resistance, many investors remain at a loss. This analysis shows that there are 5.1 million addresses that are in loss at the current market price.
This means that 5.1 million wallets are holding BTC at a loss, suggesting they purchased at a higher price than current rates. This suggests that these investments have not yet recovered, and a significant number of investors are waiting for prices to rise further before breaking even or making a profit.
Prevailing Market Sentiment
While the metric highlighted by IntoTheBlock offers reasons to worry over the recent rally, the broader market has shown resilience over the past week. Over this period, Bitcoin has experienced a significant decline in Net unrealized loss.
This is a bullish sign as the market is shifting from a period of decline to a period of price recovery, thus lowering the gap between current rates and purchase prices. Additionally, Bitcoin’s Net Realized Profit/loss has been rising from a low of $75.5 million to $860.2 million over the past week.
When NRPL increases, it reflects positive market sentiment with a significant number of participants realizing profits. This further reinforces the confidence that prices will continue to rise, thus attracting more buyers.
In conclusion, although there are 5.1 million addresses still at a loss as observed by IntoTheBlock, BTC market sentiment has shifted from bearish to positive. Therefore, the current market sentiments set Bitcoin for further gains.
