Bitcoin is likely to face additional downside pressure, after finishing June below its moving 200-week average and above its realized value. According to crypto analyst PlanB, this suggests that the bear market market still hasn’t reached its bottom.
Bitcoin fell 20.5% in June to close the month at $58,526 — its worst monthly performance since June 2022 — below its 200-week moving average of $62,000 but above its realized price of $52,000.
“ALL previous bear market bottoms were below realized price,” said PlanB created the Stock-to-Flow Pricing Model on Wednesday. In a separate blog post, PlanB added that Bitcoin could drop You can get up to $52,000.
Bitcoin’s price would drop by about 60 percent from the all-time record high in October of 126,000 dollars. It could even be deeper as previously bear markets Bitcoin has fallen even more, by 83% between 2018 and 2022.
BTC has been undervalued and can continue to fall.
“Right now, price is much lower than value and indeed might go lower from here (below realized),” PlanB is saying. “So, Bitcoin is undervalued but can still go lower.”
BTC trades between the 200 week moving average and realized price. Source: PlanB
Bitcoin’s actual price is calculated as the total cost of coins currently in circulation. unspent transaction output It is the last time it was moved onto-chain. The average price that holders paid for their coins is used as an on-chain support level during bear markets.
Related: Bitcoin bounces off 21-month low, but leverage data signals caution: Was $57K the bottom?
Andri Fauzan, research leader at Bitrue Research Institute and Cointelegraph, said that June’s close was higher than the actual price but lower than the 200-week moving Average. “signals the bear bottom is still ahead per prior cycles.”
“I’m eyeing late-2026 capitulation there before the next leg up, though shallower this cycle due to institutions,” “He said”
Lacie Zhang of Bitget Wallet said to Cointelegraph, that the current consolidation at $60,000 is a sign that Bitcoin will continue to consolidate. “approaching a potential bottom zone, with strong historical and technical support likely forming around the $55,000 level if further downside occurs.”
The market price for mid-term years
ITC Crypto founder Benjamin Cowen speculated Given that this is the year for US midterms, there may be a Bitcoin bottom cycle in 2018. This was the case with previous bear market bottoms, in 2018 and 2020.
“The second half of midterm years usually marks the accumulation zone/market cycle bottom,” “He said”
US midterms will be held on Nov. 3. This is when the entire House of Representatives, and approximately a third of Senate Seats are at stake.
Magazine: Bitcoin slides to $58K, XRP hits $1 but onchain data promising: Market Moves
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Source: cointelegraph.com
