Bitcoin’s been on a bit of a rollercoaster lately. After hitting a record high of $124,427 on August 14th, it’s dropped about 12% in the past couple of weeks, hovering around $109,000. Is this just a temporary dip, or is something bigger brewing?
A Crucial Support Level
Analyst Yonsei_dent has pinpointed a key support level for Bitcoin: $107,800. This number is significant because it’s close to the average cost of Bitcoin for recent buyers (what’s called the Short-Term Holder Realized Price).
- Investors who bought Bitcoin in the last month have an average cost of around $116,400.
- Those who bought it 1-3 months ago paid around $112,600.
- But those who bought 3-6 months ago got in much cheaper, at around $93,400.
When you average all these recent buyers together, the overall average cost is about $107,800.
What Happens Next?
This $107,800 mark is a big deal.
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If Bitcoin stays above it:
Short-term holders are close to breaking even, so they’re less likely to panic and sell. The market could stabilize. -
If Bitcoin falls below it: Many recent buyers will be in the red, leading to potential panic selling and a further price drop. The next support level to watch would be around $93,400 (the average cost for those who bought 3-6 months ago). These investors are likely to hold on tighter since they’re already in profit.
It’s not all doom and gloom, though. If Bitcoin can climb back above $112,600-$116,400 (the average cost for the 1-3 month and 1-week-1-month holders), it could boost confidence and potentially send the price back up.
Bitcoin by the Numbers
As of now, Bitcoin is trading around $109,400, down about 5.65% in the last month. Trading volume is also down. Despite this, it remains the biggest cryptocurrency and one of the top five global assets.
