The price of Bitcoin near the range of $20,000 is definitely scaring the market, but after it narrowly avoided the breaking support- is the worst supposed to be over? According to quite a few on-chain indicators, it does seem that the max pain hasn’t yet arrived in this cycle.
As one can understand, the stakes are quite high for many holders in this week- almost 50% of the supply is currently being held at a major loss and most miners are looking toward upping their shipments of BTC to most of the exchanges. Even most of the biggest investors of the cryptocurrency- MicroStrategy- have to forcibly defend their conviction on BTC as the price action keeps tumbling.
Bitcoin Price Has Crashed And It Might Not Be Over
Despite this drop to eighteen-month lows, the price action of Bitcoin hasn’t yet shaken out most of its speculators. According to the RHODL Ratio from Philip Swift- who is the creator of LookIntoBitcoin- an on-chain analytics resource, more capitulation should definitely be on the way.
Now, this is historically due to the ratio between long-term, and short-term holders have often been more in favor of the latter at most of the macro price bottoms. RHODL mostly takes the ratio that is present between the 1-week and the 1-2 year courts of the Realized Cap HODL Waves metric- which routinely divides coins by when they moved last.
While it does feel that the entire market of Bitcoin stands at a loss, but above the price of $20,000, most of them are still holding onto what ideally looks like meager gains- as they keep waiting for a rebound. CryptoQuant, a fellow on-chain analytics platform, recently revealed that just 46% of the total supply of BTC was being held at a loss.
Despite the production cost likely being a lot closer to $30,000 than $20,000, the miners of Bitcoin haven’t yet started covering their expenses with sales of hoarded BTC.