Why Is This Level Crucial?

Bitcoin (BTC) correction below this level is set to put 2023-2024 buyers underwater, CryptoQuant community analyst noticed

Cryptocurrency analyst who goes by @AxelAdlerJr on X (formerly Twitter) noticed that Bitcoin’s (BTC) drop below $46,400 will send the largest cryptocurrency below its average buy level for the last 12 months. As such, holding BTC becomes unprofitable for the new cohort of purchasers.

2023-2024 Bitcoin (BTC) buyers in danger below this price level

The Bitcoin (BTC) community should be watching closely the level of $46,400 per coin. This milestone is the average price the orange coin was purchased at last year. Such estimations were shared by CryptoQuant’s community analyst @AxelAdlerJr with his X followers.

Mysteriously, this mark coincides with the peak of the local mid-January 2024 rally of Bitcoin’s (BTC) price triggered by the hotly-anticipated spot Bitcoin ETF approval in the United States.

The analyst warned his followers that once the price slips below $46,400, the market will be dominated by “panic.” Bulls should be very attentive to notice whether large holders would be able to buy this dip.

At the same time, he adds that buyers are still very far from being exhausted. Major players parked a nine-digit sum in U.S. Dollar Tether (USDT) across various chains.

As covered by U.Today previously, the analyst indicated the inflow of fresh capital in Q1, 2024, that was expected to kickstart the next “parabolic” bull run for the BTC price.

Bitcoin (BTC) at $45,000: Charles Edwards on “normal pullbacks”

Meanwhile, some renowned experts are sure that Bitcoin (BTC) might drop even below the yearly purchasing average mark in a “normal” move.

Charles Edwards, the founder of Capriole Investments and the author of $100,000 “Energy Value Model” of the Bitcoin (BTC) price, will be comfortable even with BTC at $45,000 as such moves are natural for this market.

In the macro view, every cycle of the Bitcoin (BTC) price goes through five-six pullbacks, losing 35-45% per each. As such, this correction might look “healthy” once BTC stays above $43,920.

By press time, BTC managed to erase some of its losses, adding 2.52% overnight. The Bitcoin (BTC) price stabilized over $56,700 on major spot exchanges.

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