Bitcoin on June 7 – BTC would be in danger below $26,250 according to this on-chain indicator

Return of volatility on Bitcoin – The SEC is attacking Binance and Coinbase, and it’s not just affecting cryptocurrency prices. Indeed, the bosses of Binance and Coinbase accuse a deadweight loss of $1.7 billion. For now, the bitcoin price is resilient in the face of these various negative news. BTC is currently trading above $26,000, buyers need to keep holding on to avoid further waves of declines. Is the worst already behind us?

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Bitcoin price climbs 1.8% in 24 hours

As explained in the introduction, the BTC shows itself solid while the SEC attacks Binance and Coinbase. THE BTC price even climbs 1.8% in 24 hours :

Performance of Bitcoin against different pairs – Source: Coincheckup

The Bitcoin price is now showing a drop of 2.3% in seven days. However, BTC remains in the green in three months and in six months. For its part, the BTC/ETH pair climbs 1.5% in 24 hours. Bitcoin regains color against the second capitalization of cryptocurrencies.

Bitcoin Price Must Stay Above $26,250

In on-chain analysis, we can be interested in short-term holders. These are traders, newcomers who have the particularity of react strongly to volatility, and quickly cut positions. Thus, we can draw a realized price curve of short-term holders (STH) :

Bitcoin recently bounced off the curve representing the realized price of short-term holders - June 7, 2023.
Bitcoin moves on the STH realized price curve Source: Therationnalroot

We notice that when the course fall below the curveshort-term holders tend to panic and sell their bitcoins. On the other hand, when the course bounces off this green curvethe price tends to resume a bullish direction as in September 2020 or September 2021. According to this on-chain indicator, the price should stay above $26,250. Is Bitcoin in danger in the short term?

Bitcoin price tries to retake support at $26,700

Thanks to the upward movement experienced yesterday, the price is back above the bracket at $26,700. However, BTC is already in the process of test this support again important. It must hold to avoid returning to the level of the next support located at $25,000 :

Bitcoin price attempts to regain support at $26,700 - June 7, 2023.
Bitcoin price against the dollar (4H)

Is the price marking a new diversion below the bracket at $26,700 ? If so, the price could return to the level of the next resistance at $27,500. The RSI is back at the level of the bullish trendline, a rejection could occur here. If the RSI manages to develop above 62buyers would pick up the short-term momentum.

The Bitcoin price is experiencing a real battle between buyers and sellers right now. Based on the on-chain indicator shown above, price action should stay above $26,250. Technical analysis shows that we should keep the support level at $26,700 to avoid a new downward wave that could bring the price back to $25,000.

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