One of the most significant on-chain metrics for analyzing the behavior of short-term holders, who predominantly act as speculators, is the Realized Price-UTXO Age Bands. Historically, this metric has effectively served as support and resistance within the market. When combined with technical levels, it provides more robust insights.
Currently, the price of Bitcoin has fallen below this metric. By incorporating the static technical support level around $60,000 into our analysis, it becomes evident that Bitcoin still has potential for further correction. Furthermore, the 3-month to 6-month band is nearing this technical support level, potentially reinforcing its strength, similar to the behavior observed in September.
At present, the correction appears to be healthy. However, should bearish momentum persist, the subsequent substantial support level is anticipated to be around $50,000.
Written by Grizzly