Bitcoin’s price has surged above $67K after softer CPI data was released last week, sparking a debate among analysts about its next move. Some predict a breakout to a new all-time high, while others anticipate a drop to test the $60,000 support level. On-chain data now highlights the Short-Term Holder (STH) realized price, indicating a potential support level at $61.5K. This shift comes as Bitcoin currently trades around $67K, closing the gap observed earlier in the year.
Bitcoin’s Dominance Reigns Supreme
Recent tweets suggest that Bitcoin’s dominance may be approaching a local peak as it nears a descending trend line that has served as a strong resistance since 2017. A rise in Bitcoin dominance often signals a shift in market trends, with investors potentially moving funds to alternative coins in search of higher returns.
Currently, Bitcoin’s dominance stands at 55.8%, with a slight decrease of 0.12%. Trader Daan Crypto Trades highlights the $72,000 mark as a significant resistance zone. Despite surpassing resistance levels around $67.4K, Bitcoin faces strong hurdles at approximately $68K and beyond $72K. Analyst Rekt Capital believes Bitcoin is just 1% away from entering a new phase in the bull market.
Analyzing the STH realized chart from CryptoQuant, $61.5K emerges as a crucial support level for Bitcoin. This metric, focusing on short-term holders who have held coins for up to six months, aids in determining market bottoms or potential reversal zones. Currently, this cohort represents 53.48% of Bitcoin’s total market cap.
Will $61.5K Hold as Support?
In early April, the gap between the STH realized price and Bitcoin’s market price was $9K, but it has since narrowed to $5.09K. This consolidation phase could solidify $61.5K as a robust support level, reflecting a transfer of volume from long-term holders to short-term holders. The increased activity of newer market participants has led to a significant shift in market share, particularly within the 1 month to 3 months cohort.
The sensitivity of short-term holders to price changes makes the $61.5K level crucial, serving as both support and potential resistance. Its stability could boost investor confidence and favor a positive short-term outlook for Bitcoin. However, if this level falters, it may signal a loss of confidence and potentially become a strong resistance level, known as an S/R flip.
In conclusion, Bitcoin’s price trajectory remains uncertain, with $61.5K emerging as a key battleground for investors and traders alike.