Bitcoin Bulls, Alert! BTC Price Could Crash to $60K This Week

Bitcoin is facing a perfect storm. The Federal Reserve’s hawkish stance on interest rates is spooking investors, triggering a sell-off and leading to a whopping $620 million exodus from Bitcoin investment products last week. Bitcoin ETFs are taking the brunt of the blow.

Will Bitcoin find support or sink further? Read on to find out what key indicators might reveal about Bitcoin’s next move.

BTC Movement: What to Expect in the Coming Weeks

In this challenging environment, on-chain data shows that Bitcoin is nearing the “Realized Price” of short-term holders, an important indicator for BTC trends. Julio Moreno, CryptoQuant’s Head of Research, explained in a post on X that this metric tracks the average price at which short-term holders—those who bought within the past 155 days—acquired their coins.

The Importance of the Realized Price Indicator

The Realized Price indicator represents the average acquisition cost of Bitcoin by investors. When Bitcoin’s spot price is above this metric, the average holder is in profit; if it falls below, losses dominate. Currently, Bitcoin’s spot price is close to the Realized Price for short-term holders, showing that while these investors are still in profit, their margin is narrowing.

Historical Significance of the Realized Price Retests

Historically, retests of the short-term holder Realized Price have been crucial for Bitcoin. Moreno’s analysis highlights that in the past two years, Bitcoin’s price interacted with this level several times. In two cases (marked with green circles in the provided chart), Bitcoin found support and rebounded, continuing its upward momentum.

However, three other times (marked with red circles), Bitcoin failed to hold this level and experienced declines ranging from 8% to 12%.

Bitcoin ETFs and the Market Sentiment

Henrik Andersson, Chief Investment Officer at Apollo Crypto, noted that reduced interest in spot Bitcoin exchange-traded funds might be contributing to the market’s downturn. However, he couldn’t pinpoint the exact cause. Over the weekend, BTC stayed relatively stable around $66,000 before gaining momentum on Monday, peaking at just over $67,200. A sharp sell-off later brought it down to $64,000, with a slight rebound currently placing it near $66,000.

What Next?

The market’s reaction to the Realized Price level could determine whether Bitcoin finds support and rebounds or faces further declines, potentially dropping to $60,000. The ongoing selling pressure, influenced by macroeconomic factors like Federal Reserve policies and investor sentiment towards Bitcoin ETFs, continues to shape Bitcoin’s near-term outlook.

Investors will need to closely watch these indicators to navigate the uncertain terrain ahead.

Don’t miss a beat! Stay tuned for further analysis as the market reacts to this crucial price point for Bitcoin.