Bitcoin’s price fluctuations are receiving increased attention from such analysts as key technical levels come into play. Recent data show that Bitcoin has been trading below the short-term holder’s (STH) realized price since June 2022. This threshold is now placed around $63,000 and acts as a defining line for many short-term investors. When Bitcoin goes below this point short-term holders are likely to start selling, triggering a wide sell-off throughout the entire market.
#Bitcoin has been trading below the short-term holder's realized price since June 22.
— Ali (@ali_charts) October 5, 2024
When $BTC falls below this level, short-term holders may sell to avoid deeper losses, risking a cascading sell-off. Watch this level closely, currently at $63,000, for the next market move. pic.twitter.com/LFWr9AT7SV
Ali, a crypto analyst, notes this risk in his recent post where he says that short-term holders might wish to sell their coins in order to avoid further losses. If many do this, then it creates additional bear pressure on the Bitcoin price. This level is always a psychologically important level that provides strong reactions to any type of breakthrough.
IMF Urges El Salvador To Strengthen Bitcoin PoliciesAt present, Bitcoin is hovering slightly below this $63,000 mark. Investors are closely watching whether the market will recover and push above this level or continue to face pressure from short-term traders looking to exit their positions. Should Bitcoin stay below this threshold for an extended period, it could signal a bearish trend for the near term.
The price target for this #Bitcoin bull flag breakout is $120,000! pic.twitter.com/qayRbt9aA9
— Crypto Rover (@rovercrc) October 5, 2024
In contrast, a technical view from Crypto Rover paints a different picture. The analysis identifies formation of a bull flag which is a technical pattern with the nature of giving upward breakouts. Based on his analysis, the profit from a bull flag breakout is $120,000. This price target is in sharp contrast to parasitic sell-offs and indicates that if Bitcoin can penetrate the current range of consolidation, further upward movement may be observed.
Despite these contradicting views, the market continues to respond very well to technical levels and investor sentiment. Bitcoin traders and investors still pay attention to these moves. $63,000 is a critical turning point of the key area. If the prices go up above the level, short-term holders can regain confidence in Bitcoin while a sustained plunge below the line could trigger a deeper sell off.
