Recent on-chain data suggests btc/bitcoin-price-dips-again-65k/” target=”_blank” rel=”noopener nofollow”>bitcoin's current problems It may not be over yet, as short-term holders continue to feel the pressure. bitcoin has failed to recover significantly after a price drop last week, leaving many investors wondering whether to expect further declines in the coming weeks. In particular, the data reveals that short-term holders hold the most, especially as bitcoin continues to trade below its realized price.
bitcoin holders continue to operate under short-term weakness
Short-term holders are generally known for only buying bitcoin for a few weeks before selling it for a profit. Interestingly, just earlier this month, bitcoin had crossed $71,000 again in what many holders saw as the start of another prolonged uptrend. This brief break above $71,000 had many short holders jumping on the bandwagon, hoping to catch the wave.
However, things have not been rosy since then, as bitcoin has fallen steadily to even hit a 30-day low of $63,622 in the last 24 hours, according to data from CoinMarketCap. Not to mention the fact that the miners have given in and bitcoin-news/survival-of-the-fittest-heres-how-bitcoins-next-rally-hangs-on-miner-capitulation/” target=”_blank” rel=”noopener nofollow”>flooded the market with more Bitcoins in recent days, which has further contributed to the price drop.
According to on-chain data shared on social media platform x by crypto analyst Ali Martinez, short-term holders are starting to feel the pressure. Interestingly, this pressure arises from bitcoin's prolonged trading below its realized price of $66,200. Their cost basis or “realized price,” which is the average price at which they acquired their bitcoin holdings, now exceeds the current market value. In other words, they have unrealized losses.
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Short term twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#bitcoin Holders are starting to feel the pressure as they move forward. twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>$btc It continues to trade below its realized price of $66,200! pic.twitter.com/q2tTyrApnf
—Ali (@ali_charts) twitter.com/ali_charts/status/1804547645513552071?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>June 22, 2024
What does this mean for the price?
Short-term holders face a difficult decision at this crucial time: should they cut their losses and sell, or bitcoin/bitcoin-drops-below-64000-arthur-hayes-buy-the-dip/” target=”_blank” rel=”noopener nofollow”>hold on and HODL
At the time of writing, bitcoin is trading at $64,381 and needs a lot of effort from the bulls to prevent it from falling further. According to a weekly crypto-weekly-report” target=”_blank” rel=”noopener nofollow”>report from blockchain intelligence firm CryptoQuant, bitcoin currently bitcoin/blockchain-firm-says-bitcoin-price-might-be-headed-for-60000-heres-why/” target=”_blank” rel=”noopener nofollow”>runs the risk of falling at $60,000.
As mentioned above, on-chain data shows that bitcoin miners have been selling their holdings. x.com/intotheblock/status/1804545269008138479″ target=”_blank” rel=”noopener nofollow”>IntoTheBlock Data shows that miners have sold over 30,000 btc worth $2 billion at the fastest pace in over a year since early June.
Featured image from Shutterstock, chart from TradingView
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