Bitcoin Hits a Month-Low Amid Fears of Plunge Below $60,000
Summary:
After a surprising 3.5% drop on June 14, Bitcoin fell to a month-low of $64,950 on Bitstamp. This slump continued a week of losses, cumulatively accounting for more than 6.7%. Crypto experts are seeking possible areas to mark a near-term Bitcoin price bottom while new all-time highs seem unlikely. Concerns currently loom over Bitcoin's value returning to $60,000 and not finding support, potentially leading to a further drop to as low as $48,000.
Bitcoin's value has seen a significant decrease to a level not witnessed in a month, compelling market strategists to anticipate the trajectory it might follow. The prevailing anxiety among investors is whether the cryptocurrency's value might plummet below $60,000. The overall price at which various holders purchased Bitcoin, referred to as the aggregate cost price, is now undergoing scrutiny.
In a surprising turn of events, Bitcoin's value dropped by another 3.5% on the 14th of June, bringing the BTC/USD amount to $64,950 on Bitstamp. The development deepened the ongoing slump, culminating in a weekly decline of over 6.7%. Consequently, Bitcoin's pricing hit its lowest since mid-May, as Cointelegraph Markets Pro and TradingView corroborate.
Keith Alan, co-founder of Material Indicators, stated in a X (formerly Twitter) market report section, "Bitcoin lost the technical support of the 50-day moving average. If the value dips below $65,000, be ready for further decline toward $60,000."
Although the $65,000 benchmark managed to sustain, other experts are speculating on prospective regions to identify a near-term Bitcoin price floor, as potential new record highs seem increasingly distant.
On-chain analytics platform CryptoQuant contributor Axel Adler Jr. anticipates that the cost bases of Bitcoin holders will experience a new market evaluation. This realized price refers to the aggregate buying price of Bitcoin for variable durations. He highlights short-term holders (STHs) - entities possessing Bitcoin units for up to 155 days, representing the speculative extreme of the holder range. Their cost basis has generally supported the bull market since 2023, as cited by Cointelegraph.
CryptoQuant's current data depicts the STH realized price to be $62,200. The realized price timeline for those holding between three to six months stands at $55,500. Long-term holders, known as Bitcoin's "diamond hands," have their cost basis at $24,300. Adler further expressed, "The market will decide the correction's duration. However, in previous cycles, such circumstances have persisted from 65 to 371 days."
Persistent concerns that $60,000 might resurface in the BTC/USD graph - and failure to maintain support were earlier reported by Cointelegraph. Veteran trader Peter Brandt cautioned that in such a scenario, the value might plunge to as low as $48,000.
Nonetheless, a more immediate focal point based on exchange order book activities identified by popular trader Skew on June 15 reveals substantial bid liquidity around $62,000. Monitoring resource CoinGlass indicated a considerable line of liquidity at $64,900, essentially just below the daily lows, and progressively escalating at the time of reporting.
This write-up does not extend any investment advice or recommendations. Each investment and trading decision entails risk, and readers must embark on their individual inquiries before making a choice.
Published At
6/15/2024 12:59:52 PM
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