Bitcoin Loss-Taking Volume Has Been More Than The Profit-Taking One Recently
According to data from the on-chain analytics firm , traders are currently taking losses at twice the rate of profits. The relevant indicator here is the “ratio of daily transaction volume in profit to loss,” which, as its name already suggests, tells us about how the per day Bitcoin profit-taking volume compares with the loss-taking one.
Something to note is that this metric only measures profits and losses that have been realized (“taken”). This only happens when an investor moves or sells their coins at a price different than what they bought them at. Coins that are carrying some profit or loss, but are yet to be sold, are said to be holding an “unrealized profit/loss.”
Related Reading: Woes For Bitcoin And Ethereum As Price Weakens, Which Direction Will Prevail?
When the value of this metric is positive, it means the profit-taking volumes are currently overwhelming the loss-taking ones. Such a trend suggests that the investors as a whole are realizing some profit with their selling right now. On the other hand, a negative value implies that losses are dominating the market currently, and hence, a majority of the holders are participating in loss realization.Now, here is a chart that shows the trend in the ratio of daily transaction volume in profit to loss for Bitcoin, as well as for Ethereum, over the last few months:
Looks like the value of the metric has plunged in recent days | Source:As displayed in the above graph, the ratio of transaction volume in profit to loss had been highly positive for both Bitcoin and Ethereum just a while back when the prices had been surging.
BTC Price
At the time of writing, Bitcoin is trading around $27,900, up 1% in the last week.BTC has continued to consolidate recently | Source: