Bitcoin Price Plunges Below $67,000: Historical Support Level to Watch Next

Bitcoin has experienced a significant drop in price over the past day, falling below the $67,000 mark. Analysts are now closely watching the historical support level that the asset could potentially visit next.

One key metric that analysts are paying attention to is the Realized Price of Bitcoin Short-Term Holders (STHs), which currently sits around $64,000. The Realized Price is an on-chain metric that tracks the cost basis of the average investor in the BTC market, based on the Realized Cap model for the cryptocurrency.

The Realized Price of the STHs has been steadily increasing in recent months, particularly during the rally towards the all-time high price earlier this year. This trend is significant as the STHs represent new investors in the market who likely bought in at higher prices, pushing the average cost basis up.

Historically, the Realized Price of the STHs has acted as a major support and resistance level for Bitcoin. During bullish periods, the metric has facilitated bottom formations for the cryptocurrency, while bearish trends have seen it act as a barrier preventing the coin from rising above it.

The recent drop in Bitcoin’s price below $67,000 and the proximity of the STH Realized Price to $64,000 has sparked interest in how a potential retest of this level could play out. The chart shows that Bitcoin found support around this line during a previous crash, suggesting a continued bullish sentiment.

At the time of writing, Bitcoin is trading at around $66,800, down over 3% in the past week. Analysts and investors will be closely monitoring how Bitcoin reacts to the potential retest of the STH Realized Price in the coming days.

Overall, the fluctuation in Bitcoin’s price and the proximity to key support levels have generated significant interest and speculation among market participants. Stay tuned for updates on how Bitcoin navigates these critical levels in the near future.