Losing Bitcoin Addresses Hit All-Time High Amid Crash to $18,000

Losing Bitcoin Addresses Hit All-Time High Amid Crash to ,000

Bitcoin (BTC) hit the weekly close on July 3 after weekend trading produced a brief wick below $18,800.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Bollinger bands signal more volatility ahead

Data from Cointelegraph Markets Pro and TradingView tracked the BTC/USD pair as it stuck stiffly at $19,000 for the third day in a row.

The pair had been lacking in volatility overall over the weekend, but at time of writing it was still on track for the first weekly close below its previous halving cycle all-time high since December 2020.

The action of the previous weekend had produced a late rally that saved the bulls from a close below $20,000.

However, momentum remained weak over the following week on Wall Street, with traders unconvinced of the possibility of a significant rebound.

“Looking for a push towards lower support zone at $18,000 while below $19,300. Fast scalping and tight invalidation,” wrote the popular Crypto Tony Twitter account in an update to followers of the day.

“I really can’t trust this move because it’s ‘pa weekend,'” fellow account Ninja continued on part of another postadding that “if the bulls cannot push to $19,700, I don’t think the decline is over.”

Whether higher or lower, the volatility to come was being watched closely by commentators as the weekly close approached. Popular analyst Matthew Hyland noted that the Bollinger Bands indicator was signaling that price conditions would soon become more erratic.

On daily timeframes, the BTC/USD pair traded near the lower Bollinger Band, threatening a drop below as an expression of May-like volatility.

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Losing Bitcoin Addresses Hit All-Time High Amid Crash to $18,000
BTC/USD 1-day candlestick chart with Bollinger Bands (Bitstamp). Source: TradingView

Losing addresses exceed March 2020 high

Meanwhile, new data showed the pain the average hodler was experiencing after the worst monthly losses since 2011.

According to the on-chain monitoring company glass nodethe weekly moving average of the number of unique BTC addresses that are in losses hit a new all-time high of 18.8 million on July 3.

As Cointelegraph previously reported, in previous capitulation events, 60% of supply needed to see unrealized losses.

Losing Bitcoin Addresses Hit All-Time High Amid Crash to $18,000
Chart of losing Bitcoin addresses. Source: Glassnode

“Nearly $40 Billion in Net Losses Made in Bitcoin Since May 1,” summarized the On-Chain College analysis account at the end of June.

“Some have sold, some have stayed. One thing is for sure: If you’ve been in this space for the last year and you’re still here, you’ve been through a lot of volatility.”

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