- Crypto newbies are still underwater despite BTC’s price rally this week.
- These crypto newcomers make up 75% of BTC’s total realized market cap.
- The price of BTC is currently trading at $23,371.30.
Crypto newcomers who bought into the leading cryptocurrency by market cap, Bitcoin (BTC), are mainly underwater.
According to the CEO of CryptoQuant, Ki Young Ju, BTC newcomers that joined in early 2021 are still underwater. He added that they make up 75% of the total realized market cap.
The crypto market tracker website, CoinMarketCap, shows that BTC’s price has risen over the past 24 hours at around 6.81%, taking its price up to $23,371.30. This also means that BTC’s price is up 20.25% over the past week. BTC has also strengthened against Ethereum’s (ETH’s) price by 3.99%, as one BTC is worth approximately 14.98 ETH at the time of writing.
Is there any chance that BTC investors that invested in early 2021 will recover their losses and potentially make a profit?
The weekly chart for BTC/USDT (Source: CoinMarketCap)
Looking at the weekly chart for BTC/USDT, the price of BTC in early 2021 opened at $33,000. Given the current price of BTC, investors who bought in during this time are approximately 29.18% down at the time of writing.
It is still too early to say whether or not BTC has entered into a bull run, given that the price of BTC has climbed in the current week. The problem is that it seemed to have lost some momentum as it hit the 9 EMA line, which has been a resistance level in this bear market.
If BTC breaks above the 9 EMA level and can flip it, then the next hurdle will be the 20 EMA level at around $30,000.
However, BTC’s price has climbed too quickly over this current week and has a grueling task of having to counteract the negative momentum that has been built up over the past few weeks, as can be seen by the degree of negative slope for both the 9 and 20 EMA.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.