Leading cryptocurrency Bitcoin (BTC ($88,888.62)) has fallen by up to 10% in the last two days, falling to $86,000.
While BTC has fallen to these levels for the first time since November, Glassnode said the downside risk is not over.
Selling Pressure May Continue in Bitcoin!
Stating that the Bitcoin price fell below $92,500, which is the cost floor of short-term investors known as STH, with the recent decline, Glassnode analysts said that this level is important for identifying bear and bull markets.
At this point, it was stated that failure to regain $92,500 would cause the selling pressure and decline to continue.
“Bitcoin is currently below the $92,500 STH cost base. Historically, this level has been a threshold between local-scale bull and bear phases.
STH MVRV is at 0.96, meaning STHs carry an average loss of 4% on paper. If the STH cost base cannot be recovered, it could mean continued selling pressure.”
$71-72 Thousand on the Table in Bitcoin!
Glassnode analysts also drew attention to historical trends and stated that Bitcoin could fall to the levels of $71-72 thousand.
At this point, analysts said that historical trends suggest that Bitcoin could continue to struggle and the decline could extend to levels seen in previous corrections.
Pointing out that the Bitcoin price fell to -1σ (one standard deviation) below the short-term investor cost floor, especially in the corrections after past ATHs (May 2021, November 2021, April 2024, February 202), Glassnode said that this level corresponds to 71-72 thousand dollars under current conditions.
Glassnode argued that this level could be critical to watch for a possible recovery or further selling pressure.
“In the corrections following previous ATHs (May ’21, Nov ’21, Apr ’24, Feb ’24), Bitcoin price has fallen towards -1σ on a STH cost basis. If history repeats itself, it is currently around $71-72k.
If past trends continue, this means potential downside risk will continue.”
BitMEX co-founder Arthur Hayes also stated that the decline in Bitcoin could continue to levels of $70,000.
Related News: How Far Can Bitcoin (BTC) Price Fall? Arthur Hayes Announces the Low He Expects!
https://x.com/glassnode/status/1894337130668663150
*This is not investment advice.
Continue Reading: What’s Next for Bitcoin (BTC)? Glassnode Reminds Us of Past Drops, Points to the Level Everyone’s Talking About in Recent Days! “Risk Continues!” creator solana token
