Bitcoin’s Short-Term Fate Hinges On $112,000 Realized Price Level – Details

[Ben Graham]

The Bitcoin market remains in an intense corrective phase after prices registered a significant 6.7% price decline in the past week. The premier cryptocurrency is presently valued at around $108,000, which recent on-chain data describes as a rather volatile state. Notably, there is a need for an immediate price rebound or Bitcoin risks a further downside.

Bitcoin Faces Danger Of Sliding To $100,000 Support

In an X post on August 29, Julio Moreno, Head of Research at CryptoQuant, shares an important on-chain update on the Bitcoin market. Data from CryptoQuant’s Trader On-chain Realized Price Bands indicates that the leading cryptocurrency is trading at a critical juncture, with $112,000 emerging as a pivotal level to watch. For context, the Trader Realized Price, a measure of the average cost basis for short-term Bitcoin holders, currently sits at $112,200. Historically, this metric has acted as a key pivot in determining whether traders are in aggregate profit or loss. A sustained price move above this particular level tends to reinforce bullish momentum, while prolonged trading below it signals potential downside pressure.

As earlier stated, Bitcoin is currently consolidating below this unrealized price band, suggesting a deeper room for price correction. Therefore, Julio Moreno warns that unless BTC swiftly moves back above $112,000, selling pressure could intensify, driving the asset toward its lower realized band at around $100,000, i.e., a possible 7.91% fall from present market prices.

It is worth noting that the trader on-chain realized bands, which also extend to upper and lower boundaries, paint a broader picture of possible volatility. The upper range sits near $157,000, highlighting long-term upside potential if momentum returns. On the other hand, the lower realized support near $70,700 represents the most extreme bearish case. However, present market fundamentals make such only likely following a major macro development, regulatory shock, or the expected return of the bear market.

Bitcoin Price Overview

At press time, Bitcoin is trading at $107,960, reflecting a 3.45% decline in the past 24 hours. Meanwhile, market activity remains on the rise, with daily trading volume climbing 28.77% to $78.02 billion, suggesting that selling pressure may still be a dominant force.

In other developments, analyst Moreno has also highlighted a concerning trend in sentiment, noting that the Bitcoin Bull Index has dropped to 20 and held this level for four consecutive days. This zone is typically associated with an extreme bearish phase, indicating that investor confidence presently remains fragile.