⚠️ WILL BITCOIN DROP BELOW $60K? ⚠️
🔻 BTC Falls Below Key Level:
Bitcoin's price recently fell below $64,000, breaking through its short-term holder realized price (STH-RP), which has raised alarms about a potential further decline. CryptoQuant reports that trading below this critical support level of $65.8K suggests a possible correction towards $60K and lower.
📉 Potential Correction Ahead:
CryptoQuant highlighted in a June 21 X post that Bitcoin trading under $64K could lead to an 8%-12% correction. This would bring Bitcoin to levels not seen since May 3, when it was trading around $59,122 according to CoinMarketCap data.
🔍 Critical Support Breached:
On June 22, Bitcoin dipped 2% to $63,442, falling below the STH-RP of $64,230. The STH-RP is a significant indicator as it represents the aggregate cost basis of more speculative Bitcoin holders, those who have held BTC for 155 days or less. Historically, this level has acted as strong support during upward trends.
📊 Market Sentiment:
The recent breach has caused concerns among traders about further declines. Crypto trader Crypto Caesar noted the importance of STH-RP as support in bullish markets. Meanwhile, LookIntoBitcoin founder Phillip Swift emphasized the need to monitor if this support level holds.
💸 **Potential Liquidation Impact:**
A move down to $60,000 could result in liquidations worth $1.64 billion in long positions, according to CoinGlass data. This highlights the volatility and risk involved in the current market scenario.
📈 **Future Prospects:**
Ki Young Ju, CEO of CryptoQuant, suggests that Bitcoin's network fundamentals could support a market cap three times its current size compared to previous cyclical peaks. He pointed out that if the current price-to-hashrate-to-market-cap ratio continues to grow, it could potentially sustain Bitcoin's price up to $265,000.