Since reaching a new all-time high of $124,427 on August 14, Bitcoin has entered a prolonged correction phase, losing 12.18% of its value over the past two weeks. With the market price currently fluctuating in the range of $109,000, market analyst Yonsei_dent has identified a key support level for the current bullish market structure.
Bitcoin's Price Level of 107,800 USD: Support or Impending Collapse?
In the QuickTake post on CryptoQuant, Yonsei_dent shared some technical analysis on the Bitcoin market, while highlighting some important price levels currently. The analyst explained that the current market price of Bitcoin is almost right above the Short-Term Holder's Realized Price (STH), an important indicator that tracks the average cost basis of newly purchased coins.
Notably, investors holding coins for 1 week to 1 month have an average cost basis of $116,400, while the group holding coins for 1-3 months has a lower cost basis of $112,600. Meanwhile, the group holding coins for a period of 3-6 months has a significantly lower cost basis of $93,400. When all these short-term holding groups are calculated based on actual market capitalization, the average cost basis of STH is around $107,800, which is approximately 1.45% lower than the current market price.
This adjustment makes the $107,800 level an important level, so to speak, for the current bullish structure. If Bitcoin maintains above this level, short-term holders will almost break even, reducing the likelihood of widespread panic selling. However, if the buyers of Bitcoin lose this support zone, many new market participants will fall into a loss zone, increasing the likelihood of increased selling pressure.
In such a bearish scenario, market participants may focus their attention on the support level of $93,400, where there is a cost base of 3-6 months. This level could provide a significant buffer next, considering that investors in this group are enjoying better profits and are likely to exhibit stronger holding confidence.
However, it is important to note that the situation is not entirely bleak. A strong recovery above the $112,600–$116,400 range, corresponding to the support levels of holders for 1–3 months and 1 week–1 month, could restore market confidence and spark bullish momentum towards the possibility of returning to the current ATH of the market.
Overview of Bitcoin Price
As of the time of writing, Bitcoin is trading at 109,400 dollars after losing 5.65% in the past month. Meanwhile, the daily trading volume has decreased by 27.02%, reaching a value of 50.48 billion dollars. With a market capitalization of 2.15 trillion dollars, Bitcoin remains the largest cryptocurrency and the fifth largest global asset.
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Bitcoin Faces Greater Risk of Deeper Losses If the 107,800 USD Support Does Not Hold: Details
Since reaching a new all-time high of $124,427 on August 14, Bitcoin has entered a prolonged correction phase, losing 12.18% of its value over the past two weeks. With the market price currently fluctuating in the range of $109,000, market analyst Yonsei_dent has identified a key support level for the current bullish market structure. Bitcoin's Price Level of 107,800 USD: Support or Impending Collapse? In the QuickTake post on CryptoQuant, Yonsei_dent shared some technical analysis on the Bitcoin market, while highlighting some important price levels currently. The analyst explained that the current market price of Bitcoin is almost right above the Short-Term Holder's Realized Price (STH), an important indicator that tracks the average cost basis of newly purchased coins. Notably, investors holding coins for 1 week to 1 month have an average cost basis of $116,400, while the group holding coins for 1-3 months has a lower cost basis of $112,600. Meanwhile, the group holding coins for a period of 3-6 months has a significantly lower cost basis of $93,400. When all these short-term holding groups are calculated based on actual market capitalization, the average cost basis of STH is around $107,800, which is approximately 1.45% lower than the current market price.
This adjustment makes the $107,800 level an important level, so to speak, for the current bullish structure. If Bitcoin maintains above this level, short-term holders will almost break even, reducing the likelihood of widespread panic selling. However, if the buyers of Bitcoin lose this support zone, many new market participants will fall into a loss zone, increasing the likelihood of increased selling pressure. In such a bearish scenario, market participants may focus their attention on the support level of $93,400, where there is a cost base of 3-6 months. This level could provide a significant buffer next, considering that investors in this group are enjoying better profits and are likely to exhibit stronger holding confidence. However, it is important to note that the situation is not entirely bleak. A strong recovery above the $112,600–$116,400 range, corresponding to the support levels of holders for 1–3 months and 1 week–1 month, could restore market confidence and spark bullish momentum towards the possibility of returning to the current ATH of the market. Overview of Bitcoin Price As of the time of writing, Bitcoin is trading at 109,400 dollars after losing 5.65% in the past month. Meanwhile, the daily trading volume has decreased by 27.02%, reaching a value of 50.48 billion dollars. With a market capitalization of 2.15 trillion dollars, Bitcoin remains the largest cryptocurrency and the fifth largest global asset.