CDS Crypto News Bitcoin Dips Below Key Realized Price for Short-Term Holders, Sparking $60K Worries
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Bitcoin Dips Below Key Realized Price for Short-Term Holders, Sparking $60K Worries

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Bitcoin Dips Below Key Realized Price for Short-Term Holders, Sparking $60K Worries

Bitcoin Dips Under Realized Price for Short-Term Holders, Stoking $60K Concerns

Bitcoin Dips– Bitcoin (BTC) recently dropped below $64,000, breaking its short-term holder realized price, which could indicate a further decline to levels not seen in 49 days, according to CryptoQuant.

Bitcoin is trading below the critical support level of $65.8K and has now fallen below $64K, CryptoQuant noted in a June 21 post on X. This drop suggests a potential 8%-12% correction toward $60K, they added. Bitcoin hasn’t fallen to $60K since May 3, when it was trading at $59,122, according to CoinMarketCap data.

On June 22, Bitcoin’s price decreased by 2% to $63,442, dipping below the short-term holder realized price of $64,230 at the time, as per LookIntoBitcoin data. The short-term holder realized price (STH-RP) is a key indicator for traders, representing the average cost basis of more speculative Bitcoin holders—wallets that have stored Bitcoin for 155 days or less.

Bitcoin Dips Below Key Realized Price for Short-Term Holders, Sparking $60K Worries
Bitcoin Dips Below Key Realized Price for Short-Term Holders, Sparking $60K Worries 1

The short-term holder realized price (STH-RP) can serve as a strong support level, as it has during much of the bull markets since early 2023. Bitcoin’s price has tested this level multiple times in recent weeks. However, breaking below it raises concerns among traders about a potential further decline.

Bitcoin’s short-term holder realized price generally acts as support in upward trending markets, pseudonymous crypto trader Crypto Caesar noted on June 19.

Let’s see if it holds, added Phillip Swift, founder of LookIntoBitcoin.

A drop to $60,000 could result in $1.64 billion in long positions being wiped out, according to CoinGlass data.

Bitcoin might surge upward after a long phase of consolidation

Bitcoin has been hovering around $65,000 for some time, leaving traders to speculate on its next move, especially after two major events this year: the launch of spot Bitcoin ETFs in the United States in January and the Bitcoin halving in April.

On June 13, Cointelegraph reported that Bitcoin has been in its longest period of consolidation for 92 days. Analysts suggest this prolonged stability could be setting the stage for a significant upward rally.

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 its current size compared to the last cyclical top.

On May 8, Young Ju pointed to a chart that compared Bitcoin’s price and the hash rate to market capitalization ratio. He highlighted the ongoing volatility of the cryptocurrency and the resilience of the Bitcoin network.

FAQs

What does it mean for Bitcoin to dip below the key realized price for short-term holders?

The key realized price for short-term holders is the average price at which recent Bitcoin buyers (those who have held Bitcoin for 155 days or less) purchased their coins. When Bitcoin’s price falls below this level, it indicates that these newer investors are now holding assets at a loss, which can signal potential selling pressure and further price declines.

Why is dipping below this level significant?

Dipping below the key realized price for short-term holders is significant because it often acts as a support level. When Bitcoin’s price drops below this point, it suggests weakening market confidence and can trigger further declines as short-term holders may start selling their assets to avoid further losses.

For the latest in crypto updates, keep tabs on Crypto Data Space.

Bitcoin Dips Below Key Realized Price for Short-Term Holders, Sparking $60K Worries

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