Bitcoin’s Price Dilemma: Will it Break $60,000?

As I write this, Bitcoin’s price is hovering precariously close to a critical level that could spark a further correction towards $60,000. The cryptocurrency recently fell below $64,000, breaking its short-term holder realized price and signaling a possible decline to levels unseen in 49 days.

Bitcoin’s price has been testing the short-term holder realized price multiple times in recent weeks.

According to CryptoQuant, a cryptocurrency analysis firm, Bitcoin is trading below the critical support level of $65.8K, which suggests a potential 8%-12% correction towards $60K. This level has not been broken since May 3, when Bitcoin was trading at $59,122.

The short-term holder realized price is an important indicator for traders as it is the aggregate cost basis of more speculative Bitcoin holders.

But what does this mean for traders and investors? In my opinion, it’s a clear sign that the market is getting nervous. The short-term holder realized price has acted as a solid support for much of the bull market since early 2023, but breaching this level raises concerns that a further decline in Bitcoin’s price is possible.

Bitcoin’s price has been hovering around $65,000 for a while now, making traders speculate where to next.

On the other hand, some analysts believe that Bitcoin may see an upside swing following extended consolidation. Ki Young Ju, founder and CEO of CryptoQuant, believes that Bitcoin network fundamentals could support a market cap three times its current size compared to the last cyclical top.

The resilience of the Bitcoin network could potentially sustain its price to $265,000.

As I see it, the next few weeks will be crucial for Bitcoin’s price. Will it break $60,000, or will it bounce back to new heights? Only time will tell.

“Bitcoin’s short-term holder realised price generally acts as support in upward trending markets.” - Crypto Caesar

“Let’s see if it holds.” - Phillip Swift, LookIntoBitcoin founder