Analytics firm says: “Bitcoin’s decline is not over” and predicts a potential bottom level
Over the past few hours, Bitcoin (BTC) has risen above $72,000, prompting analytics firm CryptoQuant to assess the current market situation.
CryptoQuant noted that in recent days Bitcoin has been trading around $70,000, while the Short-Term Holder Realized Price (STH) is currently above the spot price.
At present, approximately 8% of the 5.7 million BTC held by short-term investors are in profit, while 92% are at a loss.
Analysts argue that any further price recovery could trigger increased selling pressure from this group of investors.
“…These investors hold approximately 5.7 million BTC, and only 8% are currently in profit. This situation could lead to increased selling pressure with each price rebound.”
The firm also pointed out that Strategy — the largest institutional Bitcoin holder — is also under pressure, indicating that losses are not limited to short-term holders.
According to the report, Strategy holds 762,000 BTC with an average acquisition cost of approximately $75,600, which aligns with recent resistance levels.
“The realized price of Strategy’s holdings (762k BTC) is $75,600.”
The market is reacting to this level, as recent price rallies have been rejected from this zone.
Analysts also noted that Bitcoin’s average cost basis is around $54,000, emphasizing that historically this level has often marked market bottoms.
“Meanwhile, the average cost basis (realized price) is approximately $54,000.”
In previous downturns:
the price typically returned to this level or remained below it.
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