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Why is this level crucial?
Vladislav Sopov
Bitcoin (BTC) correction below this level is bound to put 2023-2024 buyers underwater, community analyst CryptoQuant noted
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Cryptocurrency analyst @AxelAdlerJr on X (formerly Twitter) noted that Bitcoin’s (BTC) drop below $46,400 will take the largest cryptocurrency below its 12-month average purchase level. Therefore, holding BTC becomes unprofitable for the new cohort of buyers.
Bitcoin (BTC) Buyers 2023-2024 Are In Danger Below This Price Level
The Bitcoin (BTC) community should keep a close eye on the $46,400 per coin level. This milestone is the average price at which the orange coin was purchased last year. These estimates were shared by CryptoQuant community analyst @AxelAdlerJr with his X followers.
Mysteriously, this value coincides with the peak of the mid-January 2024 local rally in the price of Bitcoin (BTC), triggered by the long-awaited approval of the spot Bitcoin ETF in the United States.
The analyst warned his followers that once the price drops below $46,400, the market will be dominated by “panic.” Bulls should pay close attention to see if large holders will be able to buy into this dip.
At the same time, he adds that buyers are far from exhausted. Major players have parked nine-figure sums of USDT-backed Tether on various chains.
As previously reported by U.Today, the analyst pointed to the influx of new capital in the first quarter of 2024, which should kick off the next “parabolic” bull run in the price of BTC.
Bitcoin (BTC) at $45,000: Charles Edwards on ‘Normal Pullbacks’
Meanwhile, some renowned experts are certain that, in a “normal” situation, Bitcoin (BTC) could even fall below its annual average of purchases.
Charles Edwards, founder of Capriole Investments and author of the “Energy Value Model” of Bitcoin (BTC) price at $100,000, will be comfortable with BTC at $45,000 as such moves are natural for this market.
In macro view, every cycle of Bitcoin (BTC) price goes through five-six pullbacks, losing 35-45% each. Therefore, this correction may look “healthy” once BTC stays above $43,920.
At press time, BTC has managed to erase some of its losses, adding 2.52% overnight. Bitcoin (BTC) price has stabilized above $56,700 on major spot exchanges.
About the author
Vladislav Sopov
Blockchain analyst and writer with a scientific background. 6+ years in IT analytics, 3+ years in blockchain.
He has worked both in independent analysis and in start-ups (Swap.online, Monoreto, Attic Lab etc.)