Bitcoin Price Recovery Stalls Before Reaching Last Group of Unprofitable Holders

WHY IT MATTERS

When you buy something and its price drops below what you paid, you are said to be "underwater" — like owing more on a car than it is worth. In Bitcoin, analysts can track groups of buyers based on when they purchased. As Bitcoin's price climbs back up, it brings these groups back to break-even or profit, one by one. Right now, almost every group of Bitcoin buyers is back in profit except for the last group that bought near the highest prices. The recovery has paused just below the point where that final group would break even. This matters because people who have been waiting to get back to their purchase price sometimes sell once they break even, which can create additional selling pressure on the market.