Bitcoin Shows Resilience After Hitting 1-Month Lows

Bitcoin Shows Resilience After Hitting 1-Month Lows

Bitcoin has fallen to its lowest levels in a month, raising concerns among traders about the potential for further declines. As BTC price hovers around $65,000, key support and resistance levels are being closely monitored.

BTC Price Bottom Levels and Hodlers’ Cost Basis

Bitcoin surprised on June 14 with a 3.5% dip, taking BTC/USD to $64,950 on Bitstamp. This move built on existing weakness, taking week-to-date losses to more than 6.7% and marking the lowest levels since mid-May.

Keith Alan, co-founder of trading resource Material Indicators, highlighted the significance of the $65,000 level: “Bitcoin just lost technical support at the 50-Day Moving Average. If bulls lose support at $65k, be prepared for $60k or lower.”

Realized Price and Key Support Levels

Axel Adler Jr., a contributor to CryptoQuant, pointed out that hodlers’ cost bases are now critical levels to watch. These realized prices refer to the aggregate buy-in price for investors holding coins for various lengths of time.

  • Short-Term Holders (STHs): Entities holding BTC for up to 155 days, often the more speculative hodlers, have a realized price of $62,200. This level has provided significant support throughout 2023.
  • Medium-Term Holders: Those holding BTC for three to six months have a realized price of $55,500.
  • Long-Term Holders: Long-term holders, who typically have “diamond hands,” have a cost basis at $24,300.

Adler commented, “How long the correction might last will be determined by the market, but in previous cycles, similar situations lasted from 65 to 371 days.”

Short-Term Price Targets and Liquidity Observations

Earlier analyses highlighted concerns that BTC/USD might revisit $60,000, with potential support challenges. Veteran trader Peter Brandt has suggested that if $60,000 fails, the path could open up to as low as $48,000.

Popular trader Skew noted significant bid liquidity around $62,000 on Binance, indicating potential support. He stated, “Looks like the bid wall around $65K did get partially front run here. There’s noticeably a large gap between bids and asks here.”

Bitcoin’s recent price action has put traders on alert, with critical support levels and hodlers’ cost bases coming into focus. The market’s response to these levels will be crucial in determining the next phase of Bitcoin’s price trajectory. Whether BTC can hold above $65,000 or will test lower supports remains to be seen, with $60,000 and $62,000 as key levels to watch in the near term.

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