#Bitcoin Plunges Below $88,000, Could Accelerate Downward Trend#

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Overview

Bitcoin is currently facing downward pressure, with the short-term holder cost basis of $88,000 serving as a key support level. Analysts point out that if this cost basis is broken and there is sparse trading volume below it, it would indicate a lack of buying support and could lead to an accelerated decline in price. The URPD indicator shows that there is insufficient volume below the STH cost basis, suggesting that a decisive loss at this level could trigger further downside.

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Analysis

Bitcoin's recent drop below $88,000 has sparked market concerns. Analysts point out that $88,000 is the cost basis for short-term holders, and a decisive loss at this level could lead to further declines. Glassnode has observed through the URPD indicator that there is insufficient trading volume below the STH cost basis, indicating a lack of buying support and potentially accelerating price declines. This means that if Bitcoin falls below $88,000 and there is sparse trading volume below this support level, it could signal a lack of market confidence and further price drops.

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Bitcoin short-term holder cost basis ($88,000) is a key support level.

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Breaking below $88,000 would imply a lack of buying support and could lead to an accelerated decline in price.

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Low volume below the STH cost basis suggests that a decisive loss of this level could lead to further downside.

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The URPD indicator can be used to observe the volume below the STH cost basis.

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