• Advertise
  • Submit a Press Release
  • About Us
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Bitcoin News
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
Bitcoin

Bitcoin Loss Taking Spikes, Why This Could Be Bullish

Hououin Kyouma by Hououin Kyouma
2 months ago
in Bitcoin
Reading Time: 3 mins read

On-chain data shows Bitcoin loss-taking transaction volume has spiked recently. Here’s why this could turn out to be bullish for the asset’s price.

Bitcoin Loss-Taking Volume Has Been More Than The Profit-Taking One Recently

According to data from the on-chain analytics firm Santiment, traders are currently taking losses at twice the rate of profits. The relevant indicator here is the “ratio of daily transaction volume in profit to loss,” which, as its name already suggests, tells us about how the per day Bitcoin profit-taking volume compares with the loss-taking one.

Something to note is that this metric only measures profits and losses that have been realized (“taken”). This only happens when an investor moves or sells their coins at a price different than what they bought them at. Coins that are carrying some profit or loss, but are yet to be sold, are said to be holding an “unrealized profit/loss.”

Related Reading: Woes For Bitcoin And Ethereum As Price Weakens, Which Direction Will Prevail?

When the value of this metric is positive, it means the profit-taking volumes are currently overwhelming the loss-taking ones. Such a trend suggests that the investors as a whole are realizing some profit with their selling right now.

On the other hand, a negative value implies that losses are dominating the market currently, and hence, a majority of the holders are participating in loss realization.

Now, here is a chart that shows the trend in the ratio of daily transaction volume in profit to loss for Bitcoin, as well as for Ethereum, over the last few months:

Bitcoin Profit Loss Ratio

Looks like the value of the metric has plunged in recent days | Source: Santiment on Twitter

As displayed in the above graph, the ratio of transaction volume in profit to loss had been highly positive for both Bitcoin and Ethereum just a while back when the prices had been surging.

This spike in profit-taking made sense as investors generally like to harvest some gains when the price observes rapid growth. Following this profit selling, however, the rally came to a halt and the cryptocurrencies have been mostly consolidating since then.

Recently, the indicator’s value has plunged for both Bitcoin and Ethereum and for the first time in five weeks, it has turned red. This implies that the holders are now participating in mass loss-taking.

The plummet has been sharper for BTC, with the metric’s value falling to about -0.45. This value suggests that loss realization is currently happening at a rate almost double that of the profits.

Related Reading: Bitcoin Older Than 5 Years Abruptly Moves, Bearish Sign?

Santiment notes that this trend could actually be a good sign for the asset as it shows the FOMOers who bought at high prices have started to give up on the rally. The coins that these holders are selling may end up in the hands of investors with a stronger conviction, hence providing a more solid bullish foundation.

BTC Price

At the time of writing, Bitcoin is trading around $27,900, up 1% in the last week.

Bitcoin Price Chart

BTC has continued to consolidate recently | Source: BTCUSD on TradingView
Featured image from Traxer on Unsplash.com, charts from TradingView.com, Santiment.net
Tags: bitcoinBitcoin BullishBitcoin Loss Takingbitcoin lossesbtcbtcusd
Tweet123Share196ShareSend
Hououin Kyouma

Hououin Kyouma

Kyouma is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021. Kyouma has been writing for many years, first as a hobbyist and later as a freelancer. He obtained a bachelor's in physics in 2022 and is planning on starting a master's in the same field in the near future. Kyouma is enthusiastic about the cryptocurrency industry and holds an active interest in on-chain analysis. His hobbies include gaming, anime, and football. You can find Kyouma on Twitter at @Kyouma29.

Related Posts

Bitcoin

Bitcoin Shows Recovery: Did This Historical Line Act As Support Again?

4 mins ago
Bitcoin Core

Bitcoin Core 25.0 Hits The Market: A Sneak Peek Into The Future

6 hours ago
Bitcoin (BTC)

JPMorgan Predicts Bitcoin (BTC) To Revisit $45,000, Here’s Why

3 days ago
Bitcoin

Bitcoin Exchange Inflows Mostly Coming From Loss Holders, Weak Hands Exiting?

3 days ago
Bitcoin Bear

Bitcoin Bearish Signal: NUPL Finds Rejection At Long-Term Resistance

4 days ago
Bitcoin

Bitcoin Hangs At $26,200: Why This Is A Crucial Support Level

4 days ago

Premium Partners

Play Finance

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

  • OpenAI crypto project Worldcoin raises $115M Tradecurve to...

    34 mins ago
  • TMS Network (TMSN) Exceeds Popular Meme Coin Rivals Shiba...

    3 hours ago
  • Traders Union published the list of Best Forex Brokers in...

    6 hours ago
  • Coinbase battles with SEC users are moving to Tradecurve

    7 hours ago
  • Cardano to hit 1$, Floki inu braces for price breakout and...

    7 hours ago

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Claim 7 BTC

© 2022 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.