Bitcoin’s recovery depends on overcoming $65,000
Bitcoin’s further recovery from the June lows critically depends on overcoming the psychological level of $65,000. According to CoinDesk, this level represents the «break-even» point for short-term investors who bought the coins. In the current market conditions, if the Bitcoin price, currently at $63,300, remains below this level, many speculators may start selling their assets once the price reaches the breakeven point.
Short-term holders face pressure amid drop in prices
Analysts at Blockware Intelligence note that current Bitcoin prices have dropped below the aggregate cost for short-term holders for the first time since August 2023. This indicates that many investors who bought Bitcoin in recent months are at a loss and may be inclined to sell their coins when the breakeven price is reached. In similar circumstances last year, the Bitcoin price was in a sideways trend for two more months before resuming its upward trend. Specialists believe that the same situation may occur this year.
Long-term investors remain unfazed
As for long-term investors or «hodlers,» the breakeven point is less than $20,000. For this group of market participants, the current 15% drop from the all-time high reached in March is a common phenomenon. In the blockchain industry, such pullbacks are not uncommon. During the bull market of 2017, Bitcoin experienced 10 pullbacks of 20% or more. Experts at Blockware emphasize that this volatility represents a healthy correction of the bull market, shaking out weak hands and providing opportunities for strategic capital placement for those with a long-term investment horizon.
