Skip to main content

Bitcoin Price Stays Range-Bound, But How Long Can It Hold? Watch This Level To Know

After beginning the week with a steep drop from around $78,000, the Bitcoin price appears to have found stability near $73,500. However, a recent on-chain evaluation suggests that if a condition is not met, this newfound stability might just be the typical calm that precedes a storm.

Bitcoin’s Key Support Sits Around $72,400

Crypto analyst Darkfost recently took to the social media platform X in a May 29 post to highlight a critical development in Bitcoin’s on-chain dynamics and its impact on the underlying. The relevant indicator here is the “Realized Price excluding >7Y Supply” metric.

For context, the metric tracks the average acquisition cost of all Bitcoin that has moved in the last seven years, excluding long-term dormant coins, to reflect the cost basis of only active market participants.

When Bitcoin trades above this level, it often means that Bitcoin’s most active holders are doing so while enjoying profits. In this case, there is a reduced probability of panic-driven sales occurring at random.

On the other hand, when the Bitcoin price remains below this key level for an extended period, it has historically indicated that active holders are likely facing pressure, as they are holding through unrealized losses. Typically, this scenario can be dangerous for Bitcoin’s price, as investors are increasingly prone to selling off their shares, either to cut losses or to break even. 

Bitcoin price

According to Darkfost, the Realized Price of Bitcoin’s active holders is around $72,400. Interestingly, the Bitcoin price recently slipped below this support level before reversing and beginning to consolidate near $73,500. 

In Darkfost’s view, a dip below the aforementioned Realized Price is, in fact, a pattern typical of bear markets. However, the crypto pundit explained that this break below the key support level must be confirmed before any news of a downtrend can be considered factual. 

Hence, the flagship cryptocurrency’s near- to mid-term future rests on how it moves in the short-term. If Bitcoin can build bullish momentum from its current consolidation, prices would immediately remain clearly above the average cost basis of its investors. 

On the contrary, if the Bitcoin price were to close definitively below $72,400, the flagship cryptocurrency could quickly enter a bearish phase, triggered by a mass sell-off likely to follow. This means market participants should watch BTC’s price action around this key level before making financial decisions.

Bitcoin Price At A Glance

As of this writing, the price of BTC is around $73,540, reflecting a 0.4% decline over the past 24 hours.



from Bitcoinist.com https://ift.tt/ILwa5Sn
Labels:

Comments

Post a Comment

Popular posts from this blog

Coinbase Adds Wormhole To Spot Trading As Solana Infrastructure Tokens Gain Visibility

Coinbase listings still matter, even in a market that likes to pretend every token is already globally accessible. The exchange ’s decision to add Wormhole puts another major infrastructure name in front of a much broader pool of traders. That matters because Wormhole is not just another speculative ticker. It sits inside one of crypto’s most important, and most debated, categories: cross-chain connectivity. For more details, visit the official Coinbase platform. TL;DR Coinbase is adding support for Wormhole’s W token on spot markets. The listing gives a higher-profile venue to a token tied to cross-chain infrastructure. It also keeps Solana ecosystem names in front of mainstream exchange users. Why A Wormhole Listing Is Interesting Bridge and messaging infrastructure often do not get the same retail attention as consumer-facing protocols, but they matter enormously to how liquidity and applications move between ecosystems. Coinbase’s listing helps push t...
Post a Comment
Read more

Ethereum On Exchanges Crashes To Historic Low Amid Market Volatility, A Bullish Signal For Price?

Ethereum saw a bounce back above the $3,000 price market , with bullish sentiment gaining momentum among investors, especially those on centralized exchanges. Even with the market experiencing sideways movements, the overall supply of ETH on crypto exchanges has fallen sharply, hitting unprecedented levels. Lowest Supply Of Ethereum On Exchanges Recent signals from on-chain metrics indicate that the Ethereum market environment is undergoing a quiet yet significant transformation. This unfolding trend is due to the sharp drop in the supply of ETH available on cryptocurrency exchanges. Related Reading: Ethereum Network Fatigue? Monthly On-Chain Transactions Drops As Activity Slows Down As reported by Coin Bureau on the social media platform X, ETH supply on centralized exchanges has hit levels not seen in years. With more holders choosing long-term storage, staking, and self-custody over keeping their assets available for trade, this significant supply drain indicates a change in i...
Post a Comment
Read more

Bitcoin Remains Range-Bound As Volatility Declines – Analyst Explains Price Action

Bitcoin has experienced frustrating price action in recent weeks, leaving investors impatient about its short-term direction. The price has been testing crucial supply levels between $98K and $100K, struggling to break out as uncertainty dominates the market. The lack of a clear move has led to speculation about whether BTC is preparing for a breakout or another correction. Adding to the uncertainty, the market was hit by negative news on Friday when crypto exchange Bybit was hacked, resulting in the theft of $1.4 billion in ETH. The incident caused fear and volatility, briefly dragging prices lower. However, Bybit responded quickly to reassure investors, easing some of the initial panic and stabilizing the market. Despite this, Bitcoin continues to consolidate in a tight range. Crypto expert Daan shared an analysis on X, noting that BTC is still ranging while volatility is steadily decreasing. As price compression increases, traders are on high alert for a potential explosive move....
Post a Comment
Read more