The Bitcoin market is always in motion, with prices fluctuating constantly and investors reacting accordingly. One of the ways to understand the dynamics of this market is to look at the purchasing prices of Bitcoin users, which indicate their entry points and their expectations of future movements.
Glassnode Analysis Reveals Amazing Numbers of Bitcoin
Glassnode, a platform that provides on-chain and financial metrics, reports that about 592,000 Bitcoins, or 3.45% of the supply in circulation, were bought at $30,200. This means that these Bitcoins have this price as their cost basis.
This means that these users bought their Bitcoins when the price was around this level, which is also the current spot price as of July 11, 2023.
This indicates that a slight change in the price, up or down, will affect the profitability or loss of 3.45% of the supply that is in circulation.
For example, if the price drops below $30,200, these users will be in the red, and they may decide to sell their Bitcoins to cut their losses or hold them in the hope of recovery.
On the other hand, if the price rises above $30,200, these users will be in the green, and they may decide to sell their Bitcoins to take profits or hold them in anticipation of further gains.
According to Glassnode, a data analytics firm, 3.71% of the total Bitcoin supply in circulation, which is equivalent to 637,000 BTC, was acquired at $16,500 per coin. Similarly, 3.05% of the circulating Bitcoin supply, which amounts to 523,000 BTC, was bought at $26,800 per coin.
These are significant price levels that act as support and resistance zones, where many buyers and sellers converge.
A lot of people bought BTC when it was $30,200, so they hope that the price will not go below that unless there is a big reason. Glassnode also showed that many buyers are waiting at $26,800. This is a strong support level where the buyers will try to prevent the price from dropping further.
The purchasing prices of Bitcoin users reveal the distribution of coins among different segments of the market and their sentiment toward the price action. By combining this information with other market indicators, such as volume, volatility, and momentum, investors can gain a better understanding of the forces that drive the Bitcoin market and make more informed decisions.
