Bitcoin Falls Below Price Realized by Short-Term Investors, Igniting Concerns for Potential Drop to $60K – TradingView Updates

The cryptocurrency BTCUSD has seen a notable dip below the $64,000 mark, crossing under the breakeven price for recent investors and hinting at the risk of a further downtrend not observed for the past 49 days, as pointed out by digital currency analysis experts at CryptoQuant.

“Going below the pivotal $65.8K support, now at sub-$64K levels,” reported CryptoQuant on their June 21 analysis.

“Dipping below this critical point signifies a probable 8%-12% downfall approaching the $60K territory,” continued CryptoQuant, highlighting a price point Bitcoin has not touched since May 3’s trade value of $59,122, per CoinMarketCap statistics.

On June 22, Bitcoin observed a 2% reduction in price to $63,442, which is lower than the short-term holder realized price then at $64,230 according to LookIntoBitcoin data. Short-term holder realized price (STH-RP) is an indicator valued by traders as it reflects the combined investment return threshold for Bitcoin holders who have stored their Bitcoin for a maximum of 155 days.

Historically, this has served as robust ground during the buoyant market periods starting from early 2023. Bitcoin’s pricing has been tested against the STH-RP multiple occasions in recent times, but now that it’s crossed this mark, it raises concerns about potential further drops in its value.

“The STH-RP usually serves as a foundational support in bullish trends,” remarked the anonymous market analyst known as Crypto Caesar on June 19.

“Will it hold? Let’s watch,” chimed in LookIntoBitcoin founder Phillip Swift.

A potential plummet to the $60,000 level could mean a $1.64 billion liquidation of long positions, as recorded by CoinGlass.

Prospective Upward Movement of Bitcoin after Prolonged Stability

Bitcoin’s valuation has been lingering near the $65,000 figure for some time, leading market participants to ponder its next movement, especially after two major events this year: the inception of the spot Bitcoin ETFs in the U.S. in January and the occurrence of the Bitcoin halving event in April.

Cointelegraph highlighted on June 13 that Bitcoin is currently experiencing its most prolonged stability phase, lasting for 92 days, and analysts are starting to infer that this could be a harbinger of a “substantial bullish surge.”

Ki Young Ju, the founder and CEO of market and on-chain analytics firm CryptoQuant, posits that “The fundamentals of the Bitcoin network could sustain a market capitalization treble its size relative to the previous cycle’s peak.”