Bitcoin price drops below key level, raising concerns for $60,000

Bitcoin’s price briefly fell below an important threshold, causing worries among traders about a potential further drop towards $60,000.

• Bitcoin recently dropped below $64,000
• This signals a possible 8%-12% correction towards $60,000
• Short-term holder realized price plays a crucial role in determining support levels

Short-term Holder Realized Price and Bitcoin’s Recent Decline

Bitcoin (BTC) experienced a dip below $64,000, breaking its short-term holder realized price and indicating a potential decline to levels not seen in 4 days, according to CryptoQuant. The firm mentioned that falling below the $65.8K support level could lead to an 8%-12% correction towards $60,000, a level last reached on May 3 when Bitcoin was trading at $59,122 according to CoinMarketCap data.

On June 22, Bitcoin’s price fell 2% to $63,442, dropping below the short-term holder realized price at the time which was $64,230, as per LookIntoBitcoin data. This price is a significant indicator for traders, especially those holding Bitcoin for 155 days or less.

Potential Upside Swing for Bitcoin

Bitcoin has been consolidating around $65,000, prompting speculation among traders following two major events this year – the launch of spot Bitcoin ETFs in the US in January and the Bitcoin halving in April. Analysts believe that the current stability could set Bitcoin up for a significant price rally.

CryptoQuant’s Ki Young Ju is optimistic about Bitcoin’s network fundamentals supporting a market cap triple its current size compared to the last cyclical peak. The hash rate to market capitalization ratio could potentially sustain Bitcoin’s price at $265,000 if it continues to grow.