October 25, 2019 at 9:30 am UTC · 2 min read
Just over 59 percent of addresses hold Bitcoin bought with an average purchase price below $7,470, putting them “in the money” on unrealized gains even after the cryptocurrency’s months-long and seemingly unrelenting downtrend.
In fact, nearly 40 percent of all BTC in circulation was purchased sub-$4,300, with 2.87 million Bitcoins—almost 16 percent of the circulating supply—having been bought between $931 and $4,298.
Intriguingly, only 2.77 million Bitcoins were bought above $10,252, just above the $10,000-mark—widely considered a critical benchmark for bullish sentiment.
Roughly two percent of holders are currently at break-even cost on their holdings, with BTC ranging between $7,328 and $7,628.
$6,649 seems to be the magic number
39 percent of all addresses are holding Bitcoins at a net loss, with the majority in the red having bought at or above $10,252.
They may not have to wait too long to recoup their losses, however. Further analysis reveals the vast majority of profitless holders will break even when Bitcoin returns to $12,000—86 percent of addresses in the red bought Bitcoin with an average price between $7,628 and $12,073.
These findings may reveal a key support level for the number-one cryptocurrency by market capitalization. Given the majority of Bitcoin addresses are in profit as long as BTC stays above $6,649,