Bitcoin price has seen a surge in buying demand above $67K after the release of softer CPI data last week. There is a divide among analysts regarding the next move for Bitcoin. Some believe that the correction is over and Bitcoin will reach a new all-time high, while others expect a downturn to retest the $60,000 support level and potentially go even lower. On-chain data is now focusing on the Short-Term Holder (STH) realized price, which suggests a new potential support level at $61.5K. This is happening as Bitcoin’s current trading price hovers around $67K, narrowing the gap observed earlier this year.
Bitcoin’s dominance in the market is also worth noting. According to a tweet by Mercer, Bitcoin’s dominance is approaching a local peak as it nears a descending trend line that has consistently acted as a strong resistance since 2017. An increase in Bitcoin dominance typically indicates a potential shift in market trends as investors may start moving their funds to altcoins in search of higher returns. Currently, Bitcoin dominance is recorded at 55.8%, showing a slight decrease of 0.12%. Noted trader Daan Crypto Trades points out that the $72,000 mark is the most significant resistance zone to watch out for.
Despite facing resistance levels around $68K, Bitcoin managed to surpass a substantial resistance cluster around $67.4K. Well-known trader and analyst Rekt Capital suggests that Bitcoin is only 1% away from initiating a new phase in the bull market. He states that Bitcoin only needs to decrease by an additional -1% to attempt a post Bull Flag breakout retest, aiming for an upward trend continuation.
When it comes to gauging market bottom or potential reversal zones, the Short-Term Holder (STH) realized price is a critical metric. According to CryptoQuant’s STH realized chart, $61.5K has become the new support floor for Bitcoin’s price. This metric represents the average cost at which the current set of Bitcoin was last moved, adjusted by the age of each coin in the cohort. Currently, this cohort accounts for 53.48% of Bitcoin’s total market cap. The gap between the STH realized price and the actual market price of Bitcoin has tightened from $9K to $5.09K, indicating a consolidation phase that could solidify $61.5K as a strong support level.
The shift in market share from long-term holders (LTH) to short-term holders (STH) further reinforces the importance of the $61.5K price level. If this level remains stable, it could boost investor confidence and support a positive short-term outlook for Bitcoin. However, if it fails to hold, it could indicate a loss of investor confidence and potentially become a strong resistance level. This is known as an S/R flip, where a previous support level becomes a resistance level after being broken.
In conclusion, Bitcoin’s price movement and market dynamics are being closely watched. The potential breakout to a new all-time high and the support level at $61.5K are key factors to monitor as they can significantly impact investor sentiment and market trends.