Attention Bitcoin Bulls BTC Price Could Plummet to 60K This Week
Bitcoin is currently caught in a challenging situation. The Federal Reserve’s hawkish stance on interest rates has spooked investors, resulting in a significant sell-off and a massive $620 million exit from Bitcoin investment products last week. Bitcoin ETFs are feeling the impact the most. The question now is whether Bitcoin will receive support or continue to decline. Let’s explore the key indicators that might shed light on Bitcoin’s future moves.
BTC Movement: Predictions for the Weeks Ahead
In this tough environment, on-chain data indicates that Bitcoin is approaching the “Realized Price” of short-term holders, a crucial indicator for BTC trends. Julio Moreno, CryptoQuant’s Head of Research, recently discussed this metric on X. The Realized Price tracks the average price at which short-term holders, those who purchased Bitcoin in the last 155 days, acquired their coins.
The Realized Price Indicator’s Significance
This indicator shows the average acquisition cost of Bitcoin by investors. When Bitcoin’s spot price is above this metric, holders are in profit; if it falls below, losses dominate. Currently, Bitcoin’s spot price is close to the Realized Price for short-term holders, suggesting that while these investors are still making a profit, their margin is shrinking.
Historical Analysis of Realized Price Retests
Retests of the short-term holder Realized Price have historically been pivotal for Bitcoin. Moreno’s analysis reveals that over the past two years, Bitcoin’s price has interacted with this level multiple times. In some instances, Bitcoin found support and continued its upward trend, while in others, it failed to hold the level and experienced declines ranging from 8% to 12%.
Bitcoin ETFs and Market Sentiment
Henrik Andersson, Chief Investment Officer at Apollo Crypto, mentioned that waning interest in spot Bitcoin exchange-traded funds could be contributing to the market’s downturn. However, the exact cause remains uncertain. Over the weekend, BTC remained relatively stable around $66,000 before a surge on Monday pushed it above $67,200. A subsequent sharp sell-off dropped it to $64,000, with a slight recovery currently placing it near $66,000.
What Lies Ahead?
The market’s response to the Realized Price level will be crucial in determining Bitcoin’s future trajectory. The ongoing selling pressure, influenced by macroeconomic factors such as Federal Reserve policies and investor sentiment towards Bitcoin ETFs, continues to shape Bitcoin’s short-term outlook. Investors must monitor these indicators closely to navigate the uncertain road ahead.
Stay tuned for further analysis as the market reacts to this critical price point for Bitcoin. Don’t miss out on the latest updates regarding Altcoins, Bitcoin, and Price Analysis.