As Bitcoin (BTC) attempts to recover from its losses since reaching $65,000, new challenges emerge as on-chain data indicates potential resistance at the $XNUMX mark. At the time of writing, the leading cryptocurrency is trading at $62,790, as it aims for a stable recovery following its decline in XNUMX month.
The downturn has caused Bitcoin prices to fall below the total cost of short-term holders (wallets holding BTC for no more than 155 days). Currently, this total is $65,000, according to data provided by LookIntoBitcoin. The realized price reflects the average price at which the token was last transferred on-chain and is used by on-chain analysis firms as a consolidated cost basis.
This situation means that short-term holders are currently facing a downturn or holding a loss position. They may attempt to exit the market at a loss, potentially increasing selling pressure near the critical $65,000 mark.
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As the ETF craze begins to wane, what’s next for Bitcoin?
Bitcoin’s price has fallen below the total value of short-term holders for the first time since May 2023, at $65,000. In the short term, some resistance is expected near the $XNUMX mark, as short-term traders seek to close their positions without suffering losses.
Last summer, when Bitcoin’s price fell below the price support level realized by short-term holders, its price fluctuated bidirectionally over two months before breaking through again.
Meanwhile, long-term holders have the incentive to maintain or increase their holdings, with an average cost base below $20 million. This figure is nearly 70% lower than BTC’s current market price, suggesting a significant buffer against market volatility.
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A top analyst shares his predictions for the Bitcoin and altcoin markets
Bitcoin’s price has fallen 73% from its peak of over $73,700 in May, which may seem severe to traditional market investors. However, for long-term cryptocurrency holders, this is a typical bull market correction.
