Bitcoin News Today: Bitcoin Price Faces Downward Risk as 7.9% Supply Held at a Loss

Bitcoin faces potential downward pressure as on-chain metrics highlight growing exposure to losses among holders. According to Sentora, a notable DeFi analytics provider, 7.9% of Bitcoin’s total circulating supply is currently held at a loss, indicating that a significant portion was purchased at higher price levels, most notably between current prices and approximately $121,000 [1]. This situation suggests that should the price continue to fall, some holders may be inclined to cut their losses, potentially amplifying downward momentum.

The report also identifies a critical price level for Bitcoin at $105,000, where approximately 900,000 BTC was previously acquired. This accumulation zone represents a strong historical support level, and if the price reaches this range, it could attract renewed buying interest from existing holders or new investors seeking entry points [1]. A rebound from this level would likely depend on the intensity of selling pressure and market sentiment at the time of the test.

Investors are advised to approach the potential drop with a structured strategy. Dollar-cost averaging (DCA), stop-loss orders, and portfolio diversification are among the key tactics recommended to manage risk in a volatile environment. Additionally, maintaining due diligence and avoiding decision-making based on fear or hype is emphasized as a crucial mindset for long-term success [1].

Historically, Bitcoin has demonstrated resilience through major price corrections. Instances of 50% or more declines from peaks have often been followed by significant rebounds, leading to new all-time highs. While past performance does not guarantee future results, this pattern underscores the asset’s capacity for recovery amid short-term volatility [1].

Looking beyond the immediate price concerns, several long-term drivers remain in place. These include the upcoming Bitcoin halving event, which historically has led to reduced supply and increased price appreciation over time. Institutional adoption is also a key factor, with the launch of spot Bitcoin ETFs bringing additional capital and legitimacy to the asset class. Technological advancements, such as the Lightning Network, further enhance Bitcoin’s scalability and utility [1]. In a macroeconomic context, Bitcoin is increasingly viewed as a hedge against inflation and economic instability, broadening its appeal to a wider range of investors.

The on-chain analysis by Sentora provides a nuanced view of Bitcoin’s current standing. While the 7.9% of supply at a loss signals potential downward risk, the historical support at $105,000 suggests a possible floor for the price. Investors are encouraged to remain informed, adopt disciplined investment practices, and focus on the broader fundamentals that continue to underpin Bitcoin’s long-term growth trajectory [1].

Source: [1] Bitcoin Price Drop Warning: Crucial Support at $105K Looms (https://coinmarketcap.com/community/articles/688ca1aacd401e0b4cb368cc/)