Bitcoin dropped below short-term hold, triggering the $60K breakout.
Bitcoin (BTC) recently fell below $64,000, breaking its perceived short-term hold and signaling a possible decline to levels not seen in 49 days, according to a cryptocurrency analysis firm.
“Bitcoin is trading below the critical support level of $65.8K, now below $64K,” CryptoQuant wrote in a June 21 X post.
“Falling below this threshold suggests an 8%-12% correction to $60K,” CryptoQuant added. This level has not been broken since May 3, when Bitcoin was trading at $59,122 according to CoinMarketCap data.
Bitcoin's most recent fall on June 22 saw it drop 2% to $63,442, falling below its short-term cap at the time, which was $64,230, according to LookIntoBitcoin data. Short-term holder realized value (STH-RP) is an important indicator for traders because it is the basis of the aggregate value of additional speculative Bitcoin hodlers – wallets that store Bitcoin for 155 days or less.
It could act as strong support as it has for most bull markets since early 2023. The price of Bitcoin has tested the STH-RP several times in recent weeks, however, a breach of this level raises concerns among traders about further declines in Bitcoin. Price is possible.
“Bitcoin's short-term holder perceived value generally acts as support in bullish markets,” anonymous crypto trader CryptoCaesar wrote on June 19.
“Let's see if it catches on,” added Philip Swift, founder of LockIntoBitcoin.
A drop to $60,000 would wipe out $1.64 billion in long positions, according to CoinGlass data.
It could see Bitcoin swing higher after an extended consolidation.
Bitcoin has been hovering around $65,000 for some time, leaving traders speculating about where it will go next, especially after two big events this year, the exit of the U.S. spot Bitcoin ETF in January and Bitcoin's halving in April.
On June 13, Cointelegraph reported that Bitcoin was in its longest period of consolidation for 92 days, and analysts believe the extended stability could set the asset up for a “major upside rally.”
“The fundamentals of the Bitcoin network could support three times the current market value compared to the previous cyclical peak,” said Ki Yang Ju, founder and CEO of the chain and market analysis firm CryptoQuant.
Related: 6 months to the side? Bitcoin price action looks like 2023 lull.
On May 8, Yang Ju cited a chart comparing the price of BTC and the corresponding hash rate to the market capitalization ratio, highlighting the crypto's continued volatility and the resilience of the Bitcoin network.
If this ratio continues to rise, Yang Ju announced that he could “hold” Bitcoin's price to $265,000.
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