Bitcoin’s price has been a rollercoaster lately. After hitting a record high above $124,000 in August, it’s taken a bit of a dive.
The Price Drop
By the end of August, Bitcoin slumped to a six-week low of around $107,500. This drop reflects a broader bearish market sentiment. While things have calmed down a bit, Bitcoin hasn’t managed to break through the $110,000 mark.
Support Levels to Watch
Crypto analyst CryptoOnchain points out two key support levels to keep an eye on:
Short-Term Holder (STH) Realized Price
This is the average price paid by investors who’ve held Bitcoin for one to three months. Historically, this level has acted as strong support and resistance. Right now, Bitcoin’s price seems to be testing this support level.
Realized Value Model’s Mid Price
This is considered a more reliable, long-term support level, based on the MVRV and Realized Price. CryptoOnchain estimates this level to be around $92,000. If the shorter-term support fails, this could be Bitcoin’s last line of defense. A break below $92,000 could mean a longer period of price correction.
Bitcoin’s Current State
At the time of writing, Bitcoin is trading around $108,689, with minimal change in the last 24 hours. However, it’s down almost 6% over the past week.
