Bitcoin (BTC) just dipped below $64,000, breaking its short-term holder realized price and indicating a likely further drop to levels not seen in 49 days, according to cryptocurrency monitoring firm CryptoQuant.
CryptoQuant reported in a June 21 X post that Bitcoin has fallen below the crucial support level of $65.8K and is now trading under $64K.
CryptoQuant noted that dropping below this threshold indicates a potential 8%-12% correction towards $60K.
It can provide strong support, as it has for many of the bull markets since early 2023. Bitcoin's price has tested the STH-RP several times in recent weeks, but surpassing this level increases concerns among traders that the price of Bitcoin may fall lower.
"Bitcoin's short-term holder realised price generally acts as support in upward trending markets," wrote pseudonymous crypto trader Crypto Caesar on June 19.
"Let's see if it holds," LookIntoBitcoin creator Phillip Swift said.
A drop to $60,000 would wipe out $1.64 billion in long positions, according to CoinGlass statistics.
Bitcoin may see an upward swing following protracted consolidation.
Bitcoin has been hovering around $65,000 for some time now, prompting traders to speculate on where it will go next, particularly following two major events this year: spot Bitcoin ETFs in the United States are expected in January, followed by the Bitcoin halving in April..
Bitcoin has experienced its longest period of stabilization in 92 days, and analysts believe this prolonged stability might be setting the stage for a "massive upside rally."
Ki Young Ju, founder and CEO of CryptoQuant, suggests that "Bitcoin network fundamentals could support a market cap three times its current size compared to the last cyclical top."
On May 8, Young Ju highlighted a chart comparing BTC's price and hash rate to the market capitalization ratio, emphasizing the cryptocurrency's ongoing volatility and the resilience of the Bitcoin network.
If this ratio continues to rise, Young Ju believes it might "potentially sustain" Bitcoin's price around $265,000.
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