Bitcoin Price Dips Below $58K, Key $51K Support Critical for Market Stability
On Thursday morning, Bitcoin was unable to maintain its position over $58,000, falling to $56,700 and remaining unchanged for the day. The price of Bitcoin is currently $56,720, up 0.35% over the last 24 hours and down 5.72% over the last week, according to statistics from CoinGecko. A recent analysis has shown that there is an increasing risk factor in the cryptocurrency market, even though Bitcoin has dropped to a little under 20% of its all-time high.
According to a report from blockchain analytics startup Glassnode, “The Short-Term Holder cohort remains heavily underwater on their holdings, making them a source of risk for the time being.” Key measures clearly show this group’s financial strain, with their unrealized losses skewing the entire market picture. The research issues a warning that if short-term holders decide to sell their holdings in large quantities, the overall stability may be upset. It is determined that in order to keep the current market structure intact, the $51,000 price level is a crucial support.
Short-Term Bitcoin Investors Struggle as Unrealized Losses Rise Amid Market Volatility
Unrealized losses for short-term investors have been steadily rising over the last few months, according to the data. This cohort’s age groups, ranging from those holding for a day to those holding for up to six months, are all presently in the red. These investors’ average cost basis is much higher than the current market price, ranging from $59,000 to $65,200. Instead of a full-blown bear market, the authors of the report observed that this state of affairs is similar to the erratic market circumstances seen in 2019.
Until the spot price reclaims the STH (Short-Term Holder) cost basis of $62.4k, there is an expectation for further market weakness,
the report
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