Bitcoin bottomed out at $17,600 on June 22, affected by the Terra implosion and subsequent market deleveraging.
BTC’s price bounced back to $25,300 after about two months, but with its local top stagnating, the price move is fair. Especially since mid-September, BTC has hovered between $18,100 and $20,500.
On-chain metrics show that the majority of BTC investors are in the water, further straining already tentative market dynamics.
Bitcoin Entity Adjusted UTXO Realized Price Distribution
The UTXO Realized Price Distribution (URPD) metric shows the price at which the current set of Bitcoin UTXOs was created.
Each bar in the graph below represents the number of existing Bitcoins that have last moved within their respective price buckets. Being entity-adjusted, we use the average purchase price of each entity to determine the balance within a given bucket.
In order to derive a more representative chart, coin movements between addresses managed by the same entity are ignored. Similarly, exchange supply is excluded because a single average price for many multiple users misrepresents the data and causes unwanted artifacts.
Only 25% of token holders bought Bitcoin below $17,600, while 14% bought between 17.6k and 22,000. Meanwhile, a staggering 61% of token holders sank to the bottom of the market.
Distribution of Unspent Realized Prices
Categorizing entities as either short-term, long-term, or exchange holders, the chart below shows that short-term holders are clustered around the $18,500 and $32,000 buckets, with $19,000 The most frequent price buckets for short-term holders.
A firm belief signal is more short-term holders turning into long-term holders, thus to some extent negating the potential for price declines during periods of stagnation in price action.
