According to crypto analytics firm CryptoQuant, Bitcoin (BTC) recently fell below $64,000, breaking short-term holders’ price realization and signaling a possible new decline to levels not seen in 49 days.
“Bitcoin is trading below the critical support level of $65.8K, now below $64K”CryptoQuant wrote in a June 21 post on X.
“Falling below this threshold suggests a potential 8%-12% correction towards $60K”CryptoQuant added, a level not broken since May 3, when Bitcoin was trading at $59,122, according to CoinMarketCap data.
According to data from LookIntoBitcoin, Bitcoin fell 2% to $63,442 on June 22, placing it below holders’ short-term realization price of $64,230. The Short-term Holder Realized Price (STH-RP) is an important indicator for traders, as it represents the aggregate base cost of the most speculative Bitcoin hodlers — wallets that hold Bitcoin for 155 days or less.
It can serve as solid support, as it has done for most bull markets since early 2023. Bitcoin price has tested the STH-RP several times in recent weeks, but the breach of this level raises concerns among traders about the possibility of a further decline.
“Bitcoin’s short-term holder realized price generally acts as support in rising markets.”wrote the pseudonymous crypto trader Crypto Caesar on June 19th.
“Let’s see if it holds up”added LookIntoBitcoin founder Phillip Swift.
According to CoinGlass data, a drop to $60,000 would wipe out $1.64 billion in long positions.
Bitcoin could see an upward swing after prolonged consolidation
Bitcoin has been hovering around $65,000 for some time, prompting traders to speculate on the next move, especially after two big events this year, the launch of spot Bitcoin ETFs in the United States in January and the halving in April.
On June 13, Cointelegraph reported that Bitcoin is in its longest period of consolidation, lasting 92 days, and analysts believe the prolonged stability could set the asset up for a “massive bullish rally”.
Ki Young Ju, founder and CEO of CryptoQuant, an on-chain and market analytics company, believes that “the fundamentals of the Bitcoin network could support a market cap three times higher than the current size if compared to the last cyclical top”.
Related: 6 months of laterality? Bitcoin Price Action Mimics 2023 Stasis
On May 8, Young Ju cited a chart comparing the price of BTC and the relative hash rate to market capitalization ratio, highlighting the crypto’s continued volatility and the resilience of the Bitcoin network.
According to Young Ju, if this relationship continues to grow, it could “potentially support” the price of Bitcoin up to $265,000.
