Bitcoin Price Continues to Decline Will the Selling Pressure Persist

As of the time of writing this article, Bitcoin (BTC) has dropped by approximately 24% in the past 3 hours and 7% in the past 4 days.
After hitting a monthly low of around $64,110, the cryptocurrency saw a slight rebound to just above $64,800:23 as of British Summer Time.
Ethereum (ETH) and other more mainstream cryptocurrencies such as Solana (SOL) and Binance Coin (BNB) also fell by 2.6%, 4.11%, and 6.3% respectively.
Furthermore, blockchain analysts believe that Bitcoin’s bullish market is losing momentum based on various indicators.
Will Clemente, co-founder of Reflexivity Research, recently emphasized that the price of Bitcoin is approaching the “holder’s short-term cost basis,” which, according to Glassnode data, is $63,800. This on-chain indicator tracks the average purchase price of recent investors.
He warned:
We do not want to see the closing price below this level for several consecutive days. It typically acts as an important trend line.
Another on-chain analytics firm, CryptoQuant, stated in a report on Tuesday that the realized price by short-term holders is actually $65,800. This indicates that Bitcoin has broken below this key support level.
When short-term holders see losses in their investments, they are more prone to panic selling, making their realized price a crucial support line. Losing this support could lead to rapid and significant losses. For example, when Bitcoin last broke this line in early August, its price dropped by 58% to around $XNUMX.