As of the time of writing this article, Bitcoin (BTC) has fallen by approximately 24% in the past 3 hours and 7% in the past 4 days.
After dropping to a monthly low of around $64,110, the cryptocurrency has slightly rebounded to just above $64,800:23 as of British Summer Time.
Ethereum (ETH) as well as other mainstream cryptocurrencies such as Solana (SOL) and Binance Coin (BNB) have also experienced respective declines of 2.6%, 4.11%, and 6.3%.
Furthermore, blockchain analysts believe that the Bitcoin bull market is losing momentum based on various indicators.
Will Clemente, co-founder of Reflexivity Research, recently emphasized that the price of Bitcoin is approaching the “holder’s short-term cost basis,” which according to Glassnode’s data is $63,800. This on-chain indicator tracks the average purchase price of recent investors.
He warned, “We don’t want to see the closing price below that level for multiple days. It typically acts as an important trend line.”
Another on-chain analysis firm, CryptoQuant, stated in a report on Tuesday that the realized price by short-term holders is actually $65,800. This indicates that Bitcoin has broken below this crucial support level.
When short-term holders experience losses in their investments, they are more prone to panic selling, making their realized price a key support line. Losing this support could result in rapid and significant losses. For instance, when Bitcoin last broke this line in early August, its price dropped by 58% to around $8,000.
