Bitcoin price falling below the $60,000 range; What is the cause?
Bitcoin reached below the $60,000 range again the previous night and has now reached the $59,000 range with a drop of about 2%.
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Summary of analysis
- In the past 29 days, since Bitcoin traded below $69,000, the selling pressure of long-term holders has decreased by 3.7 times.
- However, short-term traders sold $10 billion worth of BTC in the previous week alone.
According to Cointelegraph, the price of Bitcoin
BTC:
In the last day, with a 5% drop, it reached below the $60,000 range. Of course, Bitcoin was able to test the weekly record of $64,791 last week.
According to Chainexposed data, the current price of Bitcoin is 8% lower than the average purchase of long-term holders ($64,490). This issue has worried many traders.
However, some digital currency market analysts have predicted the continuation of the current downward trend. Rekt Capital, a famous digital currency market analyst, believes:
The price of Bitcoin will be corrected enough; So that you are convinced that the bull market is over.
Traders seem to be taking profits after BTC failed to break through the $65,000 resistance and the Jackson Hole session. In the meantime, it seems that short-term holders of Bitcoin were more effective in its price drop, as they sold more than 10 billion dollars of their reserves last week.
In addition, the 7-day active addresses of Bitcoin reached its lowest level in the last two months and showed that the activity of traders has decreased drastically.
Many analysts have identified the $50,000 level as BTC's most important support. According to them, if this level is lost, Bitcoin will face a lot of uncertainty.
The status of long-term holders of Bitcoin
A Glassnode report in June showed that more than three-quarters of bitcoins in circulation have not been moved in more than six months. One of the analysts of CryptoQuant website named Amr Taha said that for the first time in history, the total realized capital of long-term holders of Bitcoin has crossed the 10 billion dollar mark.
Realized market value is calculated using the last price at which Bitcoin was sold. Long-term holders also refer to those who have held Bitcoin for more than 155 days. Taha explained that when holders hold Bitcoin for more than 155 days, their probability of selling decreases dramatically. In other words, these holders have a much lower probability of selling their assets during short-term market fluctuations. Axel Adler, another cryptocurrency analyst, also said:
The price of Bitcoin reached below the $69,000 range on July 30 (August 9). Since then, 29 days have passed and the selling pressure of long-term holders has decreased by 3.7 times.
Analytical content published in Eviralnews is for educational and informational purposes only, and is not an investment recommendation or a buy or sell signal. Investing in the digital currency market is associated with high risk, and the user is obliged to conduct his own study and analysis regarding the desired asset before any investment.
