Critical $58.7K Binance threshold emerges as Bitcoin's next major support level
Fresh Bitcoin market analysis identifies crucial support zones for bullish traders as price action threatens to test Binance users' aggregate cost basis threshold.
As Bitcoin (BTC) continues facing renewed selling pressure that threatens to drive prices beneath the $50,000 threshold, analysts have identified four critical support zones that traders should monitor closely.
Key points:
- Multiple realized price metrics continue serving as significant benchmarks while the market establishes a sustainable long-term bottom.
- Analysis indicates Binance traders' aggregate deposit cost basis represents the next critical support level.
- The magnitude of realized losses has climbed to levels not witnessed since the conclusion of 2022's prolonged bear market.
Binance trader metrics take center stage in BTC price analysis
According to fresh analysis provided by Burak Kesmeci, who contributes to onchain analytics firm CryptoQuant, the $58,700 level represents the subsequent critical threshold that Bitcoin bulls must defend.
"Which 4 levels am I watching in Bitcoin? 4 key realized price levels — essential for tracking the long-term trend in my view," he wrote in one of CryptoQuant's Quicktake blog posts on Wednesday, titled "Bitcoin's Roadmap to the Bottom."
The concept of realized price represents the combined cost basis across the entire BTC supply or specific portions of it. Whenever BTC is transferred onchain, the realized price is updated to reflect the market value at which that particular transaction occurred.
Realized price metrics encompassing substantial quantities of coins frequently serve as either market support zones or areas of resistance during price movements.
"Bitcoin has been dropping ever since it lost the New Whales' cost basis — a classic bear cycle signal," Kesmeci noted.
The aggregate purchase price for newer Bitcoin whale investors currently registers at $88,700, though with current market prices trading significantly beneath this threshold, three additional levels have emerged as important focal points. The realized price for older whale cohorts represents the lowest figure among these selections at $41,600, whereas Bitcoin's aggregate cost basis across all holders presently stands at $54,700.
Positioned between the present spot market price and these two thresholds, however, sits the realized price for deposit addresses (UDA RP) on Binance, the world's largest cryptocurrency exchange by trading volume.
"From here, the 2 key supports I'll be watching in order are Binance UDA RP and Bitcoin RP (58.7K and 54.7K)," Kesmeci added.
"The reason: once Bitcoin falls below New Whales' cost basis, it historically tends to at least test the Realized Price. And the only support standing between here and there is 58.7K."
Current Bitcoin loss metrics mirror 2022 bear market capitulation phase
Although panic-driven selling activity from cryptocurrency exchange participants has subsided following BTC/USD's recovery from 15-month lows in the vicinity of $59,000 during early February, data from CryptoQuant highlights the persistent threat of additional capitulation events.
The percentage of Bitcoin's total circulating supply presently held at an unrealized loss has climbed to 46%, marking its highest level since the conclusion of Bitcoin's 2022 bear market cycle.
"It is worth noting that the correction has been so severe that the increase in supply held at a loss has occurred very rapidly," CryptoQuant contributor Darkfost commented on X during the $60,000 swing lows.
During the previous week, meanwhile, Darkfost documented similarly notable magnitudes of realized losses among Bitcoin market participants — representing coins that changed hands at prices lower than their previous transaction values.
"At its peak, on February 5, realized losses exceeded 30,000 BTC," he confirmed.
"This remains well below the extreme levels observed during the last bear market, when realized losses reached 92000 BTC and 80000 BTC on separate occasions. Nevertheless, it is still a clear sign that a capitulation phase has taken place."
