The latest chain data suggests Bitcoin’s current problems it may not be over yet as short-term bondholders continue to feel the heat. Bitcoin failed to rebound significantly after its price plunge last week, leaving many investors wondering whether to expect further declines in the coming weeks. It is worth noting that the data shows that short-term holders have the highest expectations, especially as Bitcoin continues to trade below its realized price.

Bitcoin holders continue to trade under the short-term pain level

Miniature-term holders are generally known to buy Bitcoin only a few weeks before selling it for a profit. Interestingly, just earlier this month, Bitcoin breached $71,000 again, which many holders saw as the beginning of another extended uptrend. This brief break above $71,000 caused many low holders to jump into the trend, hoping to catch up with the wave.

However, things haven’t been all rosy since then, as Bitcoin’s price has been steadily dwindling, even hitting a 30-day low of $63,622 in the last 24 hours, according to CoinMarketCap data. Not to mention the fact that the miners gave in and flooded the market with more Bitcoins over the past few days, which has further contributed to the price decline.

According to network data shared on social media platform X by cryptocurrency analyst Ali Martinez, short-term holders are starting to feel the pressure. Interestingly, this pressure is due to Bitcoin continuing to trade below the realized price of $66,200. Their cost basis or “realized price,” which is the average price at which they acquired their Bitcoin holdings, is currently above the current market value. In other words, they survive on unrealized losses.

Miniature term #Bitcoin holders are starting to feel the pressure $BTC continues to trade below the realized price of $66,200! pic.twitter.com/q2tTyrApnf

— Ali (@ali_charts) June 22, 2024

What does this mean for the price?

Holders of short-term instruments face a arduous choice at this crucial moment: whether to cut their losses and sell, or not hang in there and HODL. While it is impossible to predict what actions individual investors might take, their position as short-term holders suggests that they are more likely to sell. This in turn can lead to further price declineat least in the low term. On the other hand, holders of long-term instruments are more likely to see this decline as a momentary breakdown and keep your property.

At the time of writing, Bitcoin is trading at $64,381 and requires a major effort from the bulls to prevent it from falling further. According to the weekly report from blockchain intelligence firm CryptoQuant, now Bitcoin there is a risk of falling up to $60,000.

As mentioned earlier, on-chain data shows that Bitcoin miners have sold their holdings. IntoTheBlock data shows that since the beginning of June, miners have sold over 30,000 BTC worth $2 billion at the fastest pace in over a year.

Featured image from Shutterstock, chart from TradingView