Bitcoin Price Under Pressure? Analyst Explains Why Retreat Below $66,000 Is Bad News
A crypto analyst has pinpointed the $66,000 mark as a crucial level for the Bitcoin price and its trajectory over the coming weeks.
Bitcoin Price Needs To Climb Above $66,000 — Here’s Why
Popular crypto pundit Ali Martinez took to the X platform to share an interesting on-chain observation for the price of Bitcoin. This on-chain revelation revolves around the warm supply realized price metric, which is derived from the average purchase price of Bitcoin that has been inactive for one to three months.
As the name suggests, this realized price accounts for warm (relatively recent) supply metrics, as opposed to “hot” (very recent) or “cold” (old) market activity. This metric is especially relevant because it offers a psychological and technical reference point for investors.
Typically, when the Bitcoin price is above the warm supply realized price, it means that the recent investors are in the green. On the other hand, the BTC price being below the warm supply realized price indicates that a significant percentage of recent investors are currently at a loss, which may potentiate selling pressure and result in a bearish trend.
#Bitcoin above the warm supply realized price is a positive sign, while dropping below it may indicate the start of a longer bear market. Right now, this level is $66,000. If $BTC stays under it, bulls should proceed with caution! pic.twitter.com/QWzTquQ5Mh
— Ali (@ali_charts) August 31, 2024
Data from Glassnode shows that the warm supply realized price is currently around $66,000. According to Martinez, bulls should approach the market with caution especially if the Bitcoin price continues to struggle beneath this level.
This is because a sustained sub-$66,000 stay might be indicative of the start of a long-term bear phase, where prices could slip even lower as selling pressure increases.
BTC Price Could Continue To Range Between $58,000 And $65,000
Interestingly, it appears that the premier cryptocurrency would still lag under the crucial $66,000 level for a while. According to analysts at QCP Capital, the Bitcoin price is likely to remain within the $58,000 and $65,000 consolidation range over the next few weeks.
This projection comes as the Bitcoin market has become somewhat desensitized to the usual bullish triggers. The QCP analysts believe that the price of the flagship cryptocurrency will continue to consolidate until certain positive catalysts ignite the market.
As of this writing, the Bitcoin price stands at around the $58,950 level, reflecting a mere 0.3% decline in the past 24 hours. According to data from CoinGecko, the market leader is down by more than 8% in the last week.