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Bitcoin’s Realized Price Levels: Key to Navigating Market Volatility

If the established support at $65,000 fails to hold, Bitcoin hodlers’ realized price levels could become crucial, according to the latest BTC price analysis.

Bitcoin Hits One-Month Low, Traders Set New Targets

Bitcoin has fallen to its lowest point in a month, prompting traders to set new BTC price targets. The concern is growing over the possibility of Bitcoin dropping below $60,000, bringing hodlers’ aggregate cost prices into focus.

Tracking BTC Price Bottom Levels

On June 14, Bitcoin saw a surprising 3.5% drop, bringing BTC/USD to $64,950 on Bitstamp. This move contributed to a week-to-date loss exceeding 6.7%, marking the lowest levels since mid-May, as confirmed by data from Cointelegraph Markets Pro and TradingView.

Keith Alan, co-founder of trading resource Material Indicators, noted on Twitter (now X), “Bitcoin just lost technical support at the 50-Day Moving Average. If bulls lose support at $65k, be prepared for $60k or lower.”

Although $65,000 held for the moment, traders are scouting for possible near-term price floors as the likelihood of new all-time highs diminishes.

Hodlers’ Cost Bases Under Scrutiny

Axel Adler Jr., a contributor to the on-chain analytics platform CryptoQuant, suggests that hodlers’ cost bases are due for a market test. These levels, known as the realized price, represent the aggregate buy-in price for investors holding coins for various durations.

Short-term holders (STHs), who hold BTC for up to 155 days, are of particular interest. Their cost basis has almost flawlessly supported the bull market since early 2023, with CryptoQuant currently showing the STH realized price at $62,200.

Other key groups include those holding BTC for three to six months, with a realized price of $55,500, and long-term holders (LTHs) or “diamond hands,” with a cost basis of $24,300.

Adler noted, “How long the correction might last will be determined by the market, but in previous cycles, similar situations lasted from 65 to 371 days.”

Concerns Over a Potential Drop to $60,000

There are concerns that Bitcoin could revisit $60,000, with longtime trader Peter Brandt warning that if this level doesn’t hold, BTC/USD could drop to as low as $48,000.

Popular trader Skew has been monitoring exchange order book activity, noting significant bid liquidity around $62,000 as of June 15. Skew observed, “Looks like the bid wall around $65K did get partially front run here. There’s noticeably a large gap between bids and asks here.”

CoinGlass data also indicates an increasing line of liquidity at $64,900, just below the intraday lows at the time of writing.

Conclusion

As Bitcoin navigates through these turbulent times, traders and investors are closely monitoring hodlers’ realized price levels. These metrics will play a crucial role in determining Bitcoin’s next moves, particularly if the support at $65,000 fails to hold.

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Disclaimer: Not Investment Advice

it’s crucial to understand that the information provided here is not to be construed as investment advice. The crypto market is dynamic and highly speculative, and decisions should be made based on thorough personal research and consideration of individual risk tolerance. Always consult with financial professionals and conduct your own due diligence before making any investment decisions. The intention of this exploration is to present insights and trends, not to provide specific investment recommendations.

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