Bitcoin Struggles To Hold Key Support: Could $88,000 Be Next?

Bitcoin has struggled to reclaim the short-term holder Realized Price, a key on-chain level. Here’s where the next major support line lies for the ￰0￱ Has Again Dipped Below STH Realized Price In its latest weekly report, on-chain analytics firm Glassnode has discussed about some key Realized Price levels for ￰1￱ “Realized Price” here refers to an indicator that measures the cost basis of the average investor or address on the BTC ￰2￱ Reading: XRP Indicator That Nailed Recent Reversals Has Flashed Again When the metric is trading above the asset’s price, it means the holders as a whole are sitting on a net unrealized ￰3￱ the other hand, it being below the spot BTC value implies the dominance of loss on the ￰4￱ Realized Price of the entire network is generally not useful, as often, the cryptocurrency’s price trades significantly over ￰5￱ reason behind this lies in the fact that a notable part of the asset’s supply has been dormant for years, possessing a cost basis far below today’s ￰6￱ fact, a chunk of this dormant supply will never return to circulation, as the wallets holding such tokens have had their keys become permanently ￰7￱ account for this, Glassnode came up with the “Active Realized Price,” a metric that only tracks the cost basis of the supply that can be considered economically ￰8￱ is the chart shared by the analytics firm that shows how the Realized Price and Active Realized Price of Bitcoin have changed since the last bull ￰9￱ is visible in the graph, Bitcoin last interacted with the Realized Price in ￰10￱ finding a rebound at it back then, the coin has only moved away from the ￰11￱ cryptocurrency has been trading much closer to the Active Realized Price since breaking above it in late 2023, but even in its case, the gap is still notable.

A version of the indicator that BTC regularly interacts with, however, is the third type listed on the chart: the short-term holder cost basis. Short-term holders (STHs) refer to the Bitcoin investors who purchased their coins within the past 155 ￰12￱ cohort represents the recent buyers, who can be reactive to changes in the ￰13￱ Realized Price of the group, which is often considered a divider between bullish and bearish trends, is currently located at $113,100. Bitcoin first fell below this mark during its crash earlier in the month, but the recovery surge took it back above the ￰14￱ the latest retracement has once again brought the asset under it.

“Over the past two weeks, Bitcoin has struggled to close a weekly candle above this key level, raising the risk of further weakness ahead,” noted ￰15￱ next on-chain support level is the Active Realized Price, currently valued at $88,000. Related Reading: Bitcoin Cost Basis Map Reveals Key War Zone Between Bulls & Bears It now remains to be seen whether BTC can recover above the STH Realized Price, or if a deeper correction is ￰16￱ Price Bitcoin has fallen by nearly 3% during the past day, with its price coming down to the $109,900 ￰17￱ image from Dall-E, Glassnode. com, chart from ￰18￱