Bitcoin (BTC) recently dipped below $64,000, below realizations from short-term holders, suggesting it may fall further to levels not seen in 49 days, according to cryptocurrency analytics firm CryptoQuant.
“Bitcoin is trading below the critical support level of $65.8K and is currently below $64K,” CryptoQuant wrote on June 21. post.
“A drop below this threshold would signal a possible 8%-12% correction towards $60,000,” CryptoQuant added. This level has not been breached since May 3, when Bitcoin was trading at $59,122, according to CoinMarketCap. data.
On June 22, Bitcoin fell 2% in its latest sell-off to $63,442, below the $64,230 realized by short-term holders at the time, according to LookIntoBitcoin. dataThe Short Term Holder Realized Price (STH-RP) is an important metric for traders as it is the total cost basis for more speculative Bitcoin holders (wallets that store Bitcoin for 155 days or less).
This could act as solid support, as has been the case during much of the bull run since early 2023. Bitcoin price has tested the STH-RP multiple times in recent weeks, raising concerns among traders that a breakout above this level could send Bitcoin price sliding further.
“Price realizations by short-term Bitcoin holders generally act as support in an uptrend market,” said anonymous crypto trader Crypto Caesar. I have written June 19th.
“Let’s see if it lasts,” said Philip Swift, founder of LookIntoBitcoin. Added.
According to CoinGlass, a drop to $60,000 would wipe out $1.64 billion in long positions. data.
Bitcoin may be on the rise after a long period of consolidation
Bitcoin has been hovering around the $65,000 mark for some time now, leaving traders speculating on where it might go next, especially after two big events this year: the launch of a U.S. spot Bitcoin ETF in January and the Bitcoin halving in April.
Cointelegraph reported on June 13 that Bitcoin is in its longest period of stability for 92 days, with analysts believing that the extended period of stability could lead to a “major bull run” for Bitcoin.
Ki Young Ju, founder and CEO of on-chain and market analytics firm CryptoQuant, believes that “Bitcoin network fundamentals could support a market cap three times higher than it is currently at compared to the previous cyclical high.”
Related: Six months flat? Bitcoin price trend mimics 2023 lull
On May 8, Youngju pointed to a chart comparing BTC price and its associated hash rate and market cap ratios, highlighting the cryptocurrency’s continued volatility and the resilience of the Bitcoin network.
If this ratio continues to increase, Yongju declared that it “could potentially sustain” the price of Bitcoin at $265,000.
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