BlockNews
FOLLOW ON X
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
Home CRYPTO

The Bitcoin Price Dip: Should Short-Term Holders Panic?

by Drop Gorn
May 2, 2024
in CRYPTO
Reading Time: 3 mins read
A A
3
SHARES
55
VIEWS
Share on XShare in TelegramShare on Reddit
  • Bitcoin’s current price is now below the average purchase price paid by short-term holders over the past 155 days, potentially causing panic due to unrealized losses.
  • The recent price drop saw Bitcoin hit its lowest level since February, with the price briefly plummeting 8% below a key support level to $56,814 on May 1.
  • While holding an unrealized loss is not ideal, breaking the short-term holder cost basis is not the end of the bull market and has been recoverable in the past, according to an on-chain analyst.

The bitcoin price has fallen below the average cost paid by short-term holders, potentially causing some to panic sell due to unrealized losses. However, analysts say this dip is recoverable and doesn’t necessarily signal the end of the bull run.

What Caused the Recent Bitcoin Price Drop?

Bitcoin dropped around 4% in the last 24 hours to below $57,500. The sharp downturn led to over $1 billion in long positions being liquidated. The sell-off was driven by anticipation of the Federal Reserve’s interest rate decision, which kept rates unchanged as expected.

How Does This Affect Short-Term Holders?

Short-term holders, or those who have held bitcoin for less than 155 days, paid an average price of around $59,600 per bitcoin. With the current price around $57,500, these buyers now have an average 3% unrealized loss. According to analyst James Check, these recent buyers are the most likely to panic sell.

Is This the End of the Bull Run?

While unpleasant, analysts say this dip below the short-term holder cost basis does not necessarily mean the bull market is over. The bitcoin price has recovered quickly from similar dips below the cost basis in the past. Sustained trading below the cost basis could happen in a continued bull market as well.

The Path Forward

A quick bounce back above the average cost basis around $59,6oo would be a bullish signal, showing similarities to price action in June 2021. Even if the price remains volatile below the cost basis for some time, analysts are not ready to call an end to the bull market yet.

Conclusion

The latest bitcoin price drop has pushed the price below what many short-term holders paid on average. While this could cause some to panic sell, analysts say the bull market likely still has room to run. Sustained prices below the cost basis have happened before on the way up to new highs.

Tags: BitcoincryptoFEDJames Check
Tweet1ShareShare
Previous Post

Fed Keeps Interest Rates Unchanged But Rate Cuts are Closer Than You Think

Next Post

Pike Finance Clarified its Statement About the USDC Exploit That Cost Them $1.6 Million

DON'T MISS THESE! HOT OFF THE PRESS

Toncoin and Telegram: The Sleeping Giant of 2025?
BITCOIN

Toncoin and Telegram: The Sleeping Giant of 2025?

July 1, 2025
Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL
BITCOIN

Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL

July 1, 2025
SEC Plans Shortcut for Crypto ETFs With New Listing Rules
CRYPTO

SEC Plans Shortcut for Crypto ETFs With New Listing Rules

July 1, 2025
Connecticut Bans Bitcoin and Crypto for Government Funds
BITCOIN

Connecticut Bans Bitcoin and Crypto for Government Funds

July 1, 2025
Shiba Inu: Turning $3,000 into $10,000 – The Math Behind the Meme
CRYPTO

Shiba Inu: Turning $3,000 into $10,000 – The Math Behind the Meme

July 1, 2025
FARTCOIN Surges 148%—Is the Meme Just the Beginning?
CRYPTO

FARTCOIN Surges 148%—Is the Meme Just the Beginning?

July 1, 2025
Load More

Related News

Toncoin and Telegram: The Sleeping Giant of 2025?

Toncoin and Telegram: The Sleeping Giant of 2025?

July 1, 2025
Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL

Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL

July 1, 2025
SEC Plans Shortcut for Crypto ETFs With New Listing Rules

SEC Plans Shortcut for Crypto ETFs With New Listing Rules

July 1, 2025
Donald Trump Threatens Elon Musk with DOGE Audit

Donald Trump Threatens Elon Musk with DOGE Audit

July 1, 2025
Jerome Powell Says July May be Too Early for Rate Cuts, But Doesn’t Rule it Out

Jerome Powell Says July May be Too Early for Rate Cuts, But Doesn’t Rule it Out

July 1, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • HOME
  • CRYPTO
  • MEMECOINS
  • TECHNOLOGY
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.