The Bitcoin roller coaster is not always to the liking of short-term traders. Once again, BTC seems to want to test the patience of the most daring. Indeed, the critical threshold of $61,600 could be crossed, causing panic among those who have held the flagship crypto for less than six months. According to one analyst, a drop below this level could precipitate a sell-off. Now is the time for vigilance for Bitcoin holders.
BTC traders under pressure amid volatility
It's well known that short-term traders like action, but when the price of Bitcoin is acting up, you shouldn't have a weak heart. Currently, BTC is trading around $60,800dangerously grazing the fateful mark of $61,600.
If this threshold is crossed, some traders could well crack and let go of their precious cryptothus triggering a snowball effect. According to Burak Kesmecianalyst at CryptoQuant, “ traders' patience will be seriously tested if Bitcoin falls below $61,600 “.
The technical indicators are not the most reassuring. Bollinger Bands are spreadingsignaling impending volatilityand the 50-day moving average is below the 200-day moving average on the 4-hour charts.
Result: BTC traders are on the lookout for the slightest market movement. Between calculated risks and fear of losing everything, tension rises.
Bitcoin and the short-term holders’ dilemma
While some prefer to hang on at all costs, other bitcoin traders are starting to show signs of weakness. Short-term holders, those who have held their BTC for less than three months are particularly vulnerable.
Their average acquisition costs are around $61,633according to the CryptoQuant data. If bitcoin falls below this level, many will be in net loss, and it doesn't take much to sow panic among the ranks.
- Critical threshold: $61,600;
- Acquisition cost of STH: $61,633;
- Bulls goal: $64,500.
Veterans, that is to say those who HODL, know that patience pays: since 2015, only three fourth quarters have posted negative performances. Even with October starting off as one of the worst in the decade, optimists are still counting on a potential rebound of 30 to 60% by the end of the year.
However, despite the brutal corrections suffered by Bitcoin, professional traders are not panicking. They stayed the course, even though the crypto dropped as low as $56,000 at one point, unlike those who abandon ship at the slightest jolt
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