Bitcoin Recorded Worst Weekly Decline In History: Glassnode Report
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Analytics data provider Glassnode has broken down last week’s Bitcoin (BTC) and crypto market slump in its “Week on Chain” report released yesterday. BTC fell from a weekly high of $59,460 to lows of $31,320, recording a massive -$28k weekly candle, the worse in history.
Glassnode added that the dollar value of daily losses from spent coins reached a new record high of $4.53 billion on May 19.
The report further stated that this capitulating occurrence is the highest net realized loss by a massive margin. Standing with a net loss of over $2.56 billion on May 19, this price action is 185% larger than the March 2020 pandemic-induced market crash.
Glassnode titled its report “A Capitulation for the History Books,” noting that a “FUD-bath” was responsible for the recent price action. The primary catalysts for the bloodbath were Elon Musk’s U-turn on BTC, China’s reiteration of a crypto ban and a clampdown on mining pools, and regulatory concerns by US authorities.
That said, the net losses have reportedly caused a decline in the Bitcoin Realised Cap, which gets derived by weighing each unspent transaction (UTXO) by the initial moving price. BTC bought at a high price are revalued to lower price levels, which resulted in a Realised Cap decline by over $7 billion from its all-time high of $377 billion.
Key Bitcoin (BTC) Levels to Watch — May 25
Bitcoin has posted a healthy recovery over the past 24 hours, following a successful break above the 50 SMA and trades around the $38.5k level. However, the benchmark cryptocurrency found heavy resistance around the $40k – $39.5k resistance area as price action enters mild consolidation.
This consolidation should get decent support from the $37.5 support level over the coming hours. Any further decline from that support level should get heavily supported by the 50 SMA line.
Meanwhile, our resistance levels are at $39,500, $40,000, and $41,000, and our key support levels are at $37,500, $36,000, and $35,000.
Total Market Capitalization: $1.64 trillion
Bitcoin Market Capitalization: $714.6 billion
Bitcoin Dominance: 43.6%
Market Rank: #1
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