Despite already emerging from crypto’s Monday blues on Friday, October 4, Bitcoin’s price has slowed over the weekend, holding steady at around $62,000. In the last 24 hours the cryptocurrency has lost 0.3% of its value, prompting questions about near term performance.
New on-chain data points to more poor performance in Bitcoin for a while as short term holders (STH) are squeezed. Crypto analyst Ali Martinez identified a key level for the cryptocurrency trading below, the STH realized price of about $63,000.
Bitcoin Stalls Below $63K
The STH realised price is the average price short term investors paid when buying BTC . Positive market sentiment and price increase can come from most recent BTC investors being in profit when trading above this level.
But when the price goes below the STH realized price, many short term holders have unrealized loss. That could start to trigger sell offs as investors try to cut their losses and add downward pressure to BTC price.
According to Martinez, Bitcoin cut under the STH realized price of $63,000 since June, signalling risks of additional fall in the short term.
But it hasn’t stopped the broader outlook for Bitcoin on the final quarter of 2024 from being optimistic. The behavior of Bitcoin holders indicated similar patterns from the 2016 and 2020 halving cycles, CryptoQuant’s on-chain analytics firm reported, indicating potential price growth.
Overall, however, the firm said BTC short term supply rose in the days following the introduction of spot exchange traded funds (ETFs) in early 2024. However, this burst was followed by a cooling period, but CryptoQuant revealed that there could be another rise in short term supply if these historical trends played out.
