Last Updated on September 2, 2023 by Bitfinsider
According to CryptoQuant analyst Adam Mourad, Bitcoin’s price has gone from about $28,000 to below $26,000 in the last four days, with the dramatic decrease being caused in part by the digital currency failing to pass a major support level.
Mourad has identified a market signal known as Short-Term Holder Realised Price, which he believes helps explain some of this week’s negative pressure.
“After Grayscale’s win on Tuesday, the bitcoin price bounced off the STH RP,” Mourad explained to The Block. “Failure to cross this threshold created selling pressure among short-term investors, contributing to a more significant drop in value.”
The statistic tracks the average price at which bitcoin was purchased by short-term investors with assets held for less than 155 days. If the price of bitcoin rises over this level, it often signals profitability for these holders, resulting in a favourable sentiment and a probable upward trend.
“On the other hand, a decline below this line can indicate a loss of confidence and selling pressure, potentially leading to a more significant market correction,” Mourad noted.
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