After hitting one-month lows, traders are prepared with their price objectives for Bitcoin; which will materialize? The total cost price of all the hodlers is now being considered as concerns about a return below $60,000 increase. On June 14, Bitcoin stunned traders with a 3.5% decline, bringing the price of BTC/USD to $64,950 on Bitstamp. Building on previous weakness, the move reduced week-to-date losses to more than 6.7% and, according to data, brought BTC price action to its lowest points since mid-May.
Keith Alan, co-founder of trading resource Material Indicators, stated in part of the market coverage on X (previously Twitter) that “Bitcoin just lost technical support at the 50-Day Moving Average.” “Be ready for $60k or lower if bulls lose support at $65k.”Even while $65,000 held, some are searching for potential regions to designate as a short-term floor in the price of bitcoin as fresh all-time highs become more and more unachievable. Hodlers’ cost bases are about to undergo another market test, according to Axel Adler Jr., a contributor to the on-chain analytics platform CryptoQuant. Realized price, another name for these levels, is the total buy-in price for investors holding coins for variable periods of time.
Short-term holders (STHs), who represent the more speculative end of the hodler spectrum, are of particular interest. STHs are entities that hold a certain unit of BTC for up to 155 days. Since the beginning of 2023, their cost base has nearly perfectly served as bull market support, as reported by Cointelegraph. As of right now, $62,200 is the STH realized price according to CryptoQuant. The realized price of $55,500 belongs to a different group of investors who have been holding Bitcoin for three to six months, referred to as “diamond hands,” whose cost basis is $24,300. “The market will decide how long the correction lasts, but in past cycles, similar circumstances lasted from 65 to 371 days,” Adler said.
It was previously stated that there were worries that the $60,000 mark on the Bitcoin/USD chart would potentially resurface, and that even this might not serve as support.Veteran trader Peter Brandt cautioned that if such a situation materializes, the road down to as low as $48,000 will become relevant. Others, who make their decisions on exchange order book activity, are more interested in short-term sectors. Popular trader Skew is one among them; on June 15, he disclosed increasing bid liquidity of almost $62,000. It appears that the bid wall for about $65K was partially successful in this instance. Regarding the environment of the biggest worldwide exchange, Binance, he said, “There’s noticeably a large gap between bids and asks here.””Ask liquidity is now quoted at roughly $70K. Therefore, there’s potential to force an illiquid squeeze ($68K – $69K), and I would be on the lookout for passive supply selling into it. If $65K is lost, the majority of demand is estimated to be around $60K, with some new bid liquidity reported between $63K and $62K. Meanwhile, data from the monitoring tool CoinGlass reveals a line of liquidity near $64,900, which is slightly below the intraday lows, and is growing as of this writing.