Bitcoin falls below short-term. According to cryptocurrency monitoring firm CryptoQuant, Bitcoin just went below $64,000, breaking its short-term holder realized price and foreshadowing a potential further decline to levels not seen in 49 days. The critical support level of $65,8K has been broken, and Bitcoin is currently trading below $64,000, according to CryptoQuant’s report on June 21
“Falling beneath this threshold signals a likely 8%-12% drop toward $60K,” CryptoQuant added, a level not broken since May when Bitcoin BTC $64,456 was trading at $59,122, according to CoinMarketCap data.”
In a recent 2% loss, Bitcoin’s price fell to $63,442 on June 22. This was less than the short-term holder realized price (STH-RP), which LookIntoBitcoin reported as $64,230. The short-term holder realized price is a crucial metric for traders because it represents the total cost for Bitcoin wallets that keep the cryptocurrency for 155 days or less.
It can provide vital support, as it did throughout most of the bull market beginning in early 2023. Bitcoin’s price has tested the STH-RP several times in recent weeks; nevertheless, breaching this level raises concerns among traders that Bitcoin’s price may fall lower.
On June 19, Crypto Caesar, a pseudonymous crypto trader, claimed that Bitcoin’s short-term holder realized price typically works as support in upward-moving markets. “Let’s see if it holds,” LookIntoBitcoin creator Phillip Swift added. A drop to $60,000 would result in a loss of $1.64 billion in long positions, according to CoinGlass statistics.
Bitcoin May Rise After Consolidation
Traders have been speculating where Bitcoin will go next, especially following two significant events in 2024: the debut of spot Bitcoin exchange-traded funds in the United States in January and the halving of Bitcoin in April. Bitcoin has been hovering around $65,000 for some time, forcing traders to speculate.
Bitcoin falls below short-term: Bitcoin has been in its most extended period of stabilization for 92 days, according to research published on June 13. Analysts believe prolonged stability may prepare the commodity for a “massive upside rally.”
The founder and chief executive officer of CryptoQuant, a company specializing in market analytics and on-chain technology, Ki Young Ju, believes that “Bitcoin network fundamentals could support a market cap three times its current size compared to the last cyclical top.”
Young Ju referred to a graphic in May that inatured a comparison between the price of Bitcoin (BTC) and the accompanying hash rate to market capitalization ratio. This chart highlighted the continued volatility of the cryptocurrency as well as the resiliency of the Bitcoin network. If this ratio continues to increase, Young Ju stated that it could “potentially sustain” the price of Bitcoin at $265,000.
Also Read: Bitcoin Crash: Crypto Analyst Explains $52,000 Drop
