Bitcoin Drops Below $70K: 40.6% of Supply Now Underwater

The leading cryptocurrency, Bitcoin ($BTC), fell below $70,000 following a downward trend seen in recent weeks and yesterday's $BTC sale by institutional buyer Strategy. As $BTC dropped below $70,000 for the first time since April, the percentage of investors experiencing losses also climbed.

CryptoQuant analyst Julio Moreno reports that the percentage of Bitcoin supply currently at a loss has reached 40.6%. However, according to Moreno, this ratio may not yet signal the bottom of the market. "Based on past data, this ratio is still not enough for us to see that the price has bottomed out," the analyst stated.

Analyzing historical data, Moreno noted that since 2015, major market lows have typically occurred when this indicator reached the upper limit of its long-term downtrend line. The analyst pointed out that while previous bear markets required more than 60% of supply to be out of the money, this threshold has consistently decreased in subsequent cycles.

While the current 40.6% level indicates significant market stress, Moreno stated that it has not yet reached the bottom, historically considered the best buying opportunity.

Finally, the analyst suggested that if the Bitcoin price weakens further or moves sideways, the percentage of supply at a loss could retest this critical trend line.

*This is not investment advice.