Analysts have warned that levels of support weaken with each successive retest. Bitcoin has now done a third consecutive test at a significant level.
Bitcoin Retests the Short-Term Holder’s Realized Price
Maartunn, community manager at CryptoQuant in a recent article, explains the new CryptoQuant video. post on X, BTC’s latest drawdown has led to it doing another retest of the short-term holder Realized Price. The “Realized Price”This indicator, which is a simple way to keep track of average costs of addresses or investors in the Bitcoin network, can be found here.
This means that if the value is higher than the current spot price, the average market participant could have a unrealized net profit. On the other hand, the indicator being below the asset’s value suggests the dominance of losses on the blockchain.
In the context of the current topic, the Realized Price of the entire userbase isn’t of interest, but that of a specific segment of it: the short-term holders (STHs). STHs are all investors that bought coins in the last 155 days.
Here is the chart showing the Bitcoin Price Realized for STHs in the past few months.
In the graph shown above, Bitcoin’s spot price was below STH’s Realized Price by June. But it broke above that line about halfway last month.
The asset experienced a few pullbacks to this line in the past weeks, but has always managed to bounce back. Now, after the latest decline, the coin’s price is once again retesting the level.
STH Realized Price is a historically reliable support point for cryptocurrency in bullish phases. Investor psychology may be the reason behind this pattern.
STHs tend to be the most prone to changing. They may panic if the market price is below their current cost.
When the mood is positive, STHs might think that a retest of this kind was nothing more than a test. dip opportunityThey could then decide to buy more. Bitcoin could have found its level of resurgence in the past because this is what has been happening.
BTC has already faced three retests in as many weeks, despite the fact that the BTC level was generally very reliable. “Each time a level is tested, it becomes weaker,” notes Maartunn.
Now it remains to see if Bitcoin STHs are still bullish about the currency or if their constant declines in value have made them nervous.
BTC Price
Bitcoin continues to be in a bearish trend. In the last 24 hour, its price dropped by 2%. It now stands at $64,700.
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Source: www.newsbtc.com