Key Points
- Bitcoin’s price may be at its market bottom, with potential for a bullish breakout.
- A key metric suggests a continued price decline for Bitcoin in the coming days.
Bitcoin’s current market position suggests it might be at its lowest point.
If a bullish trend emerges, the primary target for Bitcoin (BTC) should be $61.3k, followed by a potential rise to $63.2k.
Bitcoin’s Market Struggles
Last week, the market was heavily influenced by bearish trends, causing Bitcoin’s price to decline by over 10%. However, the past 24 hours have shown some improvement, with the coin’s price dropping by just over 1.7%.
At the time of writing, Bitcoin was trading at $57,523.15, boasting a market capitalization exceeding $1.14 trillion.
Ali, a well-known crypto analyst, shared an analysis that suggests more challenges for Bitcoin. The analysis used the Short-Term Holder Realized Price as a tool to understand the behavior of recent Bitcoin buyers.
Since June 22, Bitcoin has struggled to break above this level, with the Short-Term Holder Realized Price reaching $63,250. It’s critical for Bitcoin to reclaim this level to avoid further price drops.
Bitcoin’s Potential for Recovery
Given the looming threat of a price drop, it’s crucial to understand the likelihood of Bitcoin reclaiming the $63.2k mark.
An analysis of the realized HODL ratio revealed a downtick, which could indicate a market bottom. Other metrics also hinted at optimism, such as the aSORP turning green, indicating that more investors are selling at a loss.
In a bear market, this could signal a market bottom. The Binary CDD also turned green, suggesting that long-term holders’ movement in the past week was lower than average, indicating a potential to hold their coins.
A look at Bitcoin’s daily chart reveals that its price is nearing the lower limit of the Bollinger Bands, which often leads to price rebounds. If this occurs, Bitcoin must first surpass $61.6k before aiming for $63.2k.
However, the Chaikin Money Flow (CMF) is moving downwards, suggesting that there’s still a possibility of Bitcoin’s price dropping further.
