Why Bitcoin is Struggling to Reach a New All-Time High

Bitcoin has struggled to achieve new all-time highs, failing multiple times over the last five months when it hit $73,750.

A recent analysis by the intelligence platform IntoTheBlock identifies the distribution of Bitcoin holders as a significant barrier. The “In/Out of the Money” analysis provides insight into the price levels at which Bitcoin holders are positioned, showing where selling pressure is coming from.

7M Addresses Holding Bitcoin at Loss, Looking for Breakeven

The analysis reveals that approximately seven million addresses are holding Bitcoin at a loss, with purchase prices ranging from $61,700 to $70,500. These holders are likely waiting for a breakeven point, which could trigger significant selling activity. This $61,700 to $70,500 range represents a strong resistance level, as many of these holders may sell their Bitcoin once the price nears their acquisition cost, causing substantial selling pressure.

Bitcoin vs. Other Assets

Bitcoin’s performance in risk-adjusted returns has also been under scrutiny. A recent chart by Ecoinometrics compares Bitcoin’s Sharpe Ratio with other large-cap assets over the past twelve months. Although Bitcoin maintains a Sharpe Ratio above 2.0, it has lagged behind assets like NVIDIA and Meta, which have shown stronger returns.

A Crucial Month for Bitcoin

As September progresses, investors are watching Bitcoin closely to see if it can defy its historical trend of struggling during this month, where it typically averages a loss of 4.78%. Factors such as reduced selling pressure from the German government and strong retention by long-term holders might offer some stabilization. Moreover, renewed optimism around Bitcoin ETFs could lead to a positive inflow this month.