Cryptocurrencies

Bitcoin (BTC) recently fell below $64,000, triggering a breakout

Bitcoin (BTC) recently fell below $64,000, breaking short-term holder realized price and signaling the potential for further decline to levels not seen in 4 days, according to crypto analytics firm -CryptoQuant currency.

“Bitcoin is trading below the critical support level of $65.8k and is now below $64k,” CryptoQuant wrote in a June 21 article.

CryptoQuant added that “a decline below this threshold indicates a potential correction of 8% to 12% towards $60,000,” a level that has not been breached since May 3, when Bitcoin traded at 59 $122, according to CoinMarketCap data.

On June 22, Bitcoin’s latest decline saw it fall 2% to $63,442, below the price realized at the time for the short holder, which was $64,230, according to data from LookIntoBitcoin. Short-Term Holder Realized Price (STH-RP) is an important indicator for traders because it forms the basis of the total cost of the most speculative Bitcoin wallets – wallets that store Bitcoin for 155 days or less.

The realized price for a short-term Bitcoin holder. Source: Cryptoquant

This could provide strong support, as has happened with most bull markets since early 2023. Bitcoin price has tested STH-RP several times in recent weeks, however, a breakout of this level has traders fearing a further drop in the price of Bitcoin. The price is possible.

“The price perceived by a short-term Bitcoin holder generally serves as support in uptrending markets,” wrote a cryptocurrency trader under the pseudonym “Crypto Caesar” on June 19.

“Let’s see if that’s the case,” added LookIntoBitcoin founder Philip Swift.

A drop to $60,000 would eliminate $1.64 billion in long positions, according to CoinGlass data.

Bitcoin Could See a Rise After Prolonged Consolidation

Bitcoin has been hovering around $65,000 for some time, leaving traders speculating about its future direction, especially after two major events this year, the launch of Bitcoin ETFs in the United States in January and the Bitcoin halving in April.

On June 13, Cointelegraph reported that Bitcoin was in its longest consolidation period at 92 days, and analysts believe that prolonged consolidation could prepare the asset for a “massive bull rally.”

Founder and CEO of market and on-chain analytics firm CryptoQuant Ki Young Ju believes that “the fundamentals of the Bitcoin network could support a market capitalization three times its current size compared to the recent cyclical peak.”

about: 6 months of side effects? Bitcoin Price Action Mimics a Lull in 2023

On May 8, Young Joo highlighted a chart comparing the price of Bitcoin and the associated hashrate-to-market cap ratio, highlighting the continued volatility of cryptocurrencies and the resilience of the Bitcoin network.

If this percentage continues to increase, Young Joo announced that he would “potentially maintain” the price of Bitcoin at $265,000.

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