Bitcoin’s recent price movement has rattled traders as it dipped below a crucial support level, sparking fears of a potential further correction toward the $60,000 mark. This significant dip comes at a time when Bitcoin's price had been hovering around $65,000, raising questions about the cryptocurrency's near-term trajectory.

On June 21, the price of Bitcoin (BTC) slipped below $64,000, breaking its short-term holder realized price (STH-RP), according to data from cryptocurrency analysis firm CryptoQuant. This level is pivotal for traders, as it often serves as a strong support point. CryptoQuant highlighted the critical nature of this move in a post on X, noting, "Bitcoin is trading below the critical support level of $65.8K, now below $64K. Falling under this threshold suggests a potential 8%-12% correction toward $60K."

This decline marks the first time Bitcoin has threatened to dip to such levels since May 3, when it was trading at $59,122, according to CoinMarketCap. The recent drop saw Bitcoin decrease by 2% to $63,442 on June 22, falling below the short-term holder realized price at that time, which stood at $64,230, according to LookIntoBitcoin.

The short-term holder realized price is a crucial metric for traders, representing the aggregate cost basis of Bitcoin held by wallets for 155 days or less. Historically, this price level has acted as a robust support during bull markets. However, Bitcoin's recent breach of this level has raised alarms among traders, with some predicting a potential downward move to $60,000.

Crypto trader Crypto Caesar commented on the situation on June 19, saying, "Bitcoin's short-term holder realized price generally acts as support in upward trending markets." Phillip Swift, founder of LookIntoBitcoin, added, "Let's see if it holds."

Should Bitcoin continue to decline towards $60,000, it could result in a significant liquidation of long positions, amounting to $1.64 billion, based on data from CoinGlass.

Despite the current bearish sentiment, some analysts believe Bitcoin could be on the cusp of a major upside swing following its prolonged consolidation period. Bitcoin has been consolidating around the $65,000 level for 92 days, the longest period of steadiness this year. This has led to speculation about a potential massive rally, particularly in light of two major events: the launch of spot Bitcoin ETFs in the United States in January and the Bitcoin halving in April.

On May 8, CryptoQuant's founder and CEO, Ki Young Ju, pointed to a chart comparing Bitcoin's price and the hash rate to market capitalization ratio, suggesting that the network's fundamentals could support a market cap three times its current size compared to the last cyclical top. Young Ju indicated that if this ratio continues to grow, it could potentially sustain Bitcoin’s price up to $265,000.

As traders and analysts keep a close eye on Bitcoin's movements, the cryptocurrency market remains poised for potential volatility, with significant implications for both short-term and long-term investors.