Value

Bitcoin

Bull Market

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Bitcoin’s fall below the Short Term Holder Realized Price indicates a potential drop to $61,000 or lower.</li> 
 <li>Despite a recent 7.82% drop, Bitcoin’s Market Value to Realized Value indicates it is still in a bull market.</li> 
</ul>  
<p>Bitcoin [BTC] has recently dropped below the Short Term Holder (STH) Realized Price. This suggests that the price may fall to $61,000 or below $60,000 in the near future. </p> 
<p>At the time of writing, Bitcoin’s STH Realized Price was $64,372, while BTC’s value was $64,066. The STH Realized Price is the average value of the STH Bitcoin supply, and it is valued at the day each coin was last transacted on-chain. </p> 
<h2 id="historical-data-and-market-trends">Historical Data and Market Trends</h2> 
<p>When Bitcoin’s value surpasses the Realized Price, it often leads to a price increase. However, if it falls below this metric, it can trigger a price correction. For instance, in 2018, Bitcoin fell below the Realized Price of $11,012 and subsequently dropped to $8,455 a few months later. </p> 
<p>The Market Value to Realized Value (MVRV) Long/Short Difference is a metric that uses the ratio of long-term holders and new money entering Bitcoin to predict potential market deviations. At the moment, this metric is down to 21.16%, indicating that new money is not entering the coin’s market at a high rate. This could potentially lead to a short-term price drop. </p> 
<h2 id="still-a-bull-market">Still a Bull Market</h2> 
<p>Despite the potential for a short-term price drop, the MVRV Long/Short difference indicates that Bitcoin is still in a bull market. This is because the reading is positive. Therefore, even if the price drops to $61,000, the value could rise later in the cycle. </p> 
<p>The Relative Strength Index (RSI) on the 4-hour chart is currently 40.87. The RSI measures momentum, indicating whether it is bullish or bearish. A reading below 50 suggests bearish momentum, which could validate BTC’s bearish prediction. </p> 
<p>One analyst, Crypto Caesar, suggests that the decline could be an opportunity to buy before another rally begins. He said, “Bitcoin’s short-term holder realized price generally acts as support in upward trending markets (see chart). Currently sitting at $63,900. Historically this has been a good BTFD opportunity before more banana mode.”</p>

Bitcoin Reaches $60,000: Why Traders Must Buy The Dip

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CoinEagle.com

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