Bitcoin Plunges Below $29.5K: Is Bearish Pressure Chasing BTC Price?

• Bitcoin’s price has recently dropped below the $29.5K threshold following a bullish breakout, indicating bearish pressure.
• According to Glassnode, the number of Bitcoin addresses in loss has reached a one-month record high of 14.043 billion.
• The trading volume of Bitcoin has seen a slight upward trend despite the recent decline in price, indicating uncertain market sentiment.

Bitcoin Price Drops Below $29.5K

Recently, Bitcoin’s value has experienced a substantial decrease, plunging under the $29.5K threshold after a bullish breakout had previously sparked bullish confidence among traders with MicroStrategy’s BTC purchase plans. This downturn implies the presence of bearish pressure, suggesting that the recent surge may have been a trap for traders.

Number of Loss Addresses Hits Record High

According to a report by Glassnode, the quantity of Bitcoin addresses in loss (based on a seven-day Moving Average) reached an approximate peak of 14.043 billion earlier today – setting a new one-month record and surpassing the previous high of 14.041 billion observed on July 31st, 2023. This trend indicates that many investors purchased BTC at high prices and are now experiencing losses due to recent price volatility. Additionally, Coinglass reveals that BTC short positions worth $28 million were liquidated with an additional $13.8 million liquidated following this plunge – representing the largest short liquidation since July 14th and having an impact on current price movement.

Market Capitalization Decreases

The market capitalization of BTC has also declined substantially over this period; with its peak value at $582 billion dropping to its current level of $568 billion – resulting in a loss exceeding $14 billion in just one day’s time frame alone..

Trading Volume Follows Different Trajectory

Interestingly enough, trading volume for BTC has followed an opposite trajectory over this same period; as it is currently experiencing a slight upward trend instead mirroring its declining value – indicating uncertain market sentiment towards digital assets moving forward..

BTC Prepares For Another Decline

Following low buying pressure resulting from these events, Bitcoin could be preparing for yet another drop soon as technical indicators point towards further downside potential with no clear signs for recovery at this stage in time