bitcoin is recovering, but is still under immense sell-off pressure as of writing. As btc faces headwinds, the zone between $70,000 and $72,000 is proving to be a strong resistance level that must be broken for the wave of highs recorded in the first quarter of 2024 to continue.
The world's most valuable currency is trading below $70,000 at press time, bouncing from around $67,000. The main crucial support level to watch at the time of this publication is $66,000.
However, if the bears are relentless and reverse today's gains, more losses could be on the horizon.
Will bitcoin Fall to STH Realized Price and $62,300 Support?
Carrying x, an analyst x.com/AxelAdlerJr/status/1800424296202031269″ target=”_blank” rel=”noopener nofollow”>grades that if the ongoing liquidation of long positions continues, btc could plummet to the “Short-Term Holder Realized Price” (STH Realized Price) of $62,300.
The trader views this level as an area of low long-term liquidity. Consequently, it could be limited support where btc bulls could find entry to cover losses.
The realized price of STH is generally used to gauge sentiment. Basically, it represents the average purchase price of all btc over a period of 155 days. Those who choose to hold btc during this time are often called short-term holders or primarily speculators looking to take advantage of price volatility.
While the realized price of STH serves as a sentiment indicator, the drawn line can act as support. If btc prices continue to fall, trending below the realized price of STH, it could force coin holders to liquidate as they are in the red.
On the other hand, if prices approach the realized price of STH, traders could choose to buy, convincing holders that they are close to the break-even point.
The realized price of STH is currently $62,300, but the realized price in one to three months is $66,600.
Therefore, if bitcoin loses $66,000, the liquidation could accelerate the dump towards the 155-day STH realized price.
Eyes on FOMC amid high inflation and strong US jobs data
As the cryptocurrency market remains on edge, investors are closely monitoring the upcoming meeting of the Federal Open Market Committee (FOMC). Given the strong labor market conditions, the central bank is expected to leave interest rates unchanged at 5.50%.
Last week, employment data exceeded expectations. According to the United States Bureau of Labor Statistics (BLS), 272,000 new jobs were created. created in June, far more than the projected 185,000 economists.
However, strong non-farm payrolls (NFP) data poured cold water on hopes of an imminent rate cut.
Still, with inflation falling to 3.3% so far this year, according to the BLSthe odds of a rate cut are higher, which is a big boost for bitcoin bulls.
Featured image from Canva, TradingView chart
