Refers to the latest data on the series Bitcoin’s current problems It may not be over yet as short-term holders are still feeling the heat. Bitcoin failed to rebound significantly after last week’s price decline, leaving many investors wondering whether to expect further declines in the coming weeks. Notably, the data reveals that short-term holders have been left wanting more than others, especially as Bitcoin continues to trade below its realized price.
Bitcoin holders continue to trade in the short-term pain point
Short-term holders are generally known to buy Bitcoin for only a few weeks at a time before selling for profits. Interestingly, earlier this month, Bitcoin topped over $71,000 again in what many coin holders saw as the start of another extended uptrend. This brief break above $71,000 led to many short holders jumping on the bandwagon, hoping to catch the wave.
However, things have not been rosy since then, with Bitcoin steadily declining to hit a 30-day low of $63,622 over the past 24 hours, according to data from CoinMarketCap. Not to mention the fact that the miners had given up and flooded the market With more bitcoins in the past few days, further contributing to the price decline.
According to on-chain data shared on social media platform X by cryptocurrency analyst Ali Martinez, short-term holders of the coin are starting to feel the pressure. Interestingly, this pressure stems from Bitcoin trading for a long period below its real price of $66,200. The cost basis or “realized price,” which is the average price at which they acquired their Bitcoin holdings, now exceeds the current market value. In other words, they are sitting on unrealized losses.
Short-term #Bitcoin Owners are starting to feel the pressure as well $ Bitcoin It continues to trade below its realized price of $66,200! pic.twitter.com/q2tTyrApnf
– Ali (@ali_charts) June 22, 2024
What does this mean for the price?
Short-term bondholders face a difficult choice at this pivotal juncture: should they cut their losses and sell, or should they Stick with it and HODL. While it is impossible to know what actions individual investors might take, their status as short holders suggests that they sell often. This in turn may lead to a Further decline in prices, at least in the short term. On the other hand, long-term holders tend to see this decline As a temporary point And stick to their origins.
At the time of writing, Bitcoin is trading at $64,381 and needs a lot of effort from the bulls to keep it from falling further. According to weekly a report From blockchain intelligence company CryptoQuant, currently Bitcoin He is in danger of falling To $60,000.
As mentioned earlier, on-chain data shows that Bitcoin miners have been selling their holdings. Data inside TheBlock It appears that miners have sold more than 30,000 bitcoins worth $2 billion at the fastest rate in more than a year since the beginning of June.
Featured image from Shutterstock, chart from TradingView