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- 1 Bitcoin volume has surged over 200%, though the price dipped 4.91% intraday.
- 2 Long-term holders are selling assets, while short-term holders are increasing holdings.
- 3 Analysts suggest Bitcoin may see significant price increases after dipping into oversold territory.
The larger market has been declining and the most dominant crypto with 54.2% dominance has been following the decline. The current market price is at the critical support level, where it has been retested multiple times in the past.
The Volume has surged more than 200% and currently stands at $25.383 Billion. The possibility of further decline in the trading price of the bitcoin is higher, as the volume of the crypto has advanced with the decline in the price over time.
Bears Appear More Dominant Over the Daily Chart?
At press time, BTC was trading at $61183..2 with an intraday decline of 3.16%. The price action looks weak and favored bears. BTC breached the upward-facing trendline and reached the earlier retested key support of $60.278.
Thus, further advancement in the bearish pressure could lead the price toward the next major support at $56,393.
Long-TermInvestors Decreasing, & Short-Term Investors keeps on Accumulating!
The current Bitcoin market dynamics indicate a bearish trend, as LTHs, who typically bolster market confidence, are offloading their assets.
As there has been a noticeable decrease in Bitcoin holdings by LTHs, from 15.8 Million on January 1, 2024, to 14.4 Million.
Supply Held By Long And Short Term Holders | Source: CryptoQuant
However, in contrast, STHs have increased their Bitcoin holdings from 3.7 million to 5.2 million. Historically, a rise in STH holdings has been a precursor to market tops, as STHs are most often likely to sell during volatility.
However, caution is warranted for the crypto’s near-term price trajectory when STH holdings approach 6.5 million.
Is this Market Correction Healthy?
The Realized Price-UTXO Age Bands is used to analyze the behavior of short-term holders. In the past, this metric has acted as resistance and support within the market.
1m-3m UTXO Age Bands | Source: By CryptoQuant
The 1-month to 3-month band highlights that the price of bitcoin has fallen below this metric, it shows that it has the potential for further correction.
3m-6m UTXO Age Bands | Source: By CryptoQuant
Moreover, the 3-month to 6-month band is closing to this technical support, which could give potential strength. At present, the correction appears healthy, but should the bearishness keep its pressure high, the support level is anticipated to be around $50,000.
Why an Analyst is Urging to Buy the Dip!
An analyst highlighted on X that, over the last two years, there have been three instances where Bitcoin’s daily Relative Strength Index dipped into the oversold region. Each occurrence was followed by significant price increases for Bitcoin (BTC), with jumps of 60%, 63%, and a remarkable 198%.
In the past two years, the #Bitcoin daily RSI has hit oversold territory three times, resulting in $BTC price surges of 60%, 63%, and 198%, respectively.
— Ali (@ali_charts) June 24, 2024
With #BTC now below $62,000 and the RSI in oversold territory again, it might be a prime opportunity to buy the dip! pic.twitter.com/JkJ4IgoeML
He further stated that Bitcoin price fell below $62,000, and once again, the RSI suggests that it is oversold. This highlights that it could indicate a favorable moment for investors to consider purchasing Bitcoin.
Summary
The decline in the larger market has impacted the dominant crypto, Bitcoin, with a 54.2% dominance. Volume has surged over 200% to $25.383 Billion, signaling a potential further decline in Bitcoin’s trading price.
The current price is at critical support, with a possibility of falling toward $56,393. Long-term holders are selling assets, while short-term holders are increasing holdings, potentially signaling a market top. Analysts suggest Bitcoin may show significant price increases after dipping into oversold territory.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
