Bitcoin price fell below traders’ average entry point, leading analysts to caution that the current sell-off could continue.
Bitcoin (BTC) price has experienced mounting sell-side pressure, causing it to shed more than 5.5% over the last seven days and setting a six-week low at $58,400 on June 25. During this sell-off, BTC dropped below its short-term cost basis, risking a deeper correction, according to market intelligence firm Glassnode.
“Since mid-June, the spot price has plunged below the cost basis of both the 1w-1m holders($68.5k) and 1m-3m holders ($66.4k),” Glassnode wrote in their Week On-chain Report published on June 25.
Bitcoin short-term holder (STH) cost basis – or realized price – is a metric that represents the average acquisition price of BTC for investors who are considered short-term holders, typically defined by the movement of coins that have been held for less than 155 days.