- Newer Bitcoin holders held at an average loss of 3% at press time.
- For any rally in the short term, the coin has to break above $44,000.
Bitcoins [BTC] recent struggle to break above $43,000 has left new investors underwater.
This has also raised concerns about a potential significant capital flight from the market, pseudonymous CryoptoQuant analyst Crazzyblockk noted in a new report.
The analyst assessed the Realized Price of coin holders who bought their BTCs less than a month ago and found that the coin’s current price performance put this cohort of investors at an average loss of 3%.
BTC’s Realized Price measures the average price at which current holders last purchased the coin. It is a useful tool for measuring the sentiment of different investor groups based on their holding periods.
Crazzyblockk’s findings regarding BTC investors who bought coins less than a month showed that shorter-term sentiment remained fragile, and the price is still below their average purchase price.
This is because many of them acquired the coin when it traded above $44,000.
On the other hand, those who have held their BTC for one month to three months have been able to do so above the Realized Price for their cohort. The analyst noted,
“In the recent week, amidst the significant decline in the Bitcoin price, the market has finally shown a Positive Sign around $39,000 (1m-3m Age band Realized Price), reflecting a recovery and price growth to $42000.”
Price level to watch
For the newer investors that are currently underwater, Crazzyblockk said that the crucial level to watch lies between $43,500 and $44,000.
Notably, this price range is an equilibrium point for these short-term investors.
How much are 1,10,100 BTCs worth today?
For any significant rally in the coin’s price, the analyst opined that a breach above $44,000 has to happen. This would indicate that long-term holders are confident in the market, pushing prices further.
The analyst noted,
“It can be asserted that a breach above the $44,000 threshold signifies a robust indication of sustained positive price momentum. Conversely, this level should function as the equilibrium point for investors with holding periods of less than one month, exhibit resistance, an expectation arises for the persistence of a notable correction in the mid-term.”