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Forty days after hitting an all-time high (ATH) of $124,457.12, the Bitcoin (BTC) price has suffered a 7.07% decline in the last month. The asset’s continued volatility has sparked concerns among investors. However, Maartunn, a crypto analyst, believes the coin is testing a critical support.
Bitcoin short-term holders’ realized price
In a post on X, Maartunn noted that Bitcoin is approaching the short-term holders' (STH) realized price of $107,000. According to him, if BTC touches this price level, the asset is likely to rebound and break out in a bullish rally.
For clarity, short-term holders are investors who bought the coin within the past 155 days. So, the average price at which these investors bought the asset, referred to as the realized price, is $107,000.
With Bitcoin currently trading above the realized price, these investors are less likely to sell and could support the coin’s price resilience.
However, if it dips below this level, some holders might panic and sell. Maartunn believes that the realized price has provided reliable support for Bitcoin in this bull run. He cautions, though, that the ability of Bitcoin to break out of this price range will determine its recovery.
Notably, if the asset falls and stays below $107,000 for long, it could signal weakening momentum.
Market sentiment divided as Bitcoin faces uncertainty
As of press time, the Bitcoin price was changing hands for $110,313.52, representing a 1.68% decline in the last 24 hours. The coin dipped from an intraday peak of $112,946.38 to a low of $108,762.04, still above the realized profit level.
Meanwhile, trading volume has also suffered a decline by 10.27% to $77.57 billion within the same time frame. This suggests that investors are cautious and not convinced to continue accumulating just yet.
In light of market uncertainty, Bitcoin critic Peter Schiff had advised investors to sell their asset and wait for the coin to plunge to $75,000 before rebuying it. Whether BTC will dip that low remains unknown.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team