Last Resistance: Bitcoin Now Testing Final Short-Term Holder Cost Basis
July 23 2024 - 4:00AM
NEWSBTC
On-chain data shows that the Bitcoin price reiterates the last cost
basis level associated with the short-term holder group. Bitcoin
Price Has Surged Past Final Short-Term Holder Cost Basis As
explained by CryptoQuant author Axel Adler Jr in a new post on X,
Bitcoin has only one Realized Price of the short-term holders left
to break. The “Realized Price” here refers to an on-chain indicator
that keeps track of the average cost basis of the investors in the
BTC market. Related Reading: Solana Cooling Off After 16% Surge? TD
Sell Signal Goes Off Investors carry net profits when the
cryptocurrency’s spot price is above this level. On the other hand,
it being under the metric suggests the dominance of losses in the
market. In the context of the current discussion, the Realized
Price of the entire market isn’t of interest but rather that of a
small segment of it. The group in question is a section of the
“short-term holders” (STHs), broadly including the investors who
bought their coins within the past six months. Below is the chart
that shows the trend in the Realized Price specifically for the
STHs who have been holding since between one and three months ago:
This segment of the STHs sits right in the middle of the group,
between the newcomers who have just bought into the asset and those
who have started to gain some resilience, with a promotion into the
long-term holder (LTH) group potentially coming up for them.
According to the analyst, Bitcoin has already surged past the
Realized price of the other two parts of the STH group, meaning
that the investors falling in them would be in profits now. The
chart shows that the Realized Price of the 1 month to 3 months old
investors, the one level BTC is yet to break, is valued at $67,100.
This cryptocurrency price is currently floating around, suggesting
that this cohort’s profits are canceling their losses. Related
Reading: XRP Adoption & Activity Spike: What This Means For Its
Price The STH cost basis levels have historically been relevant for
the cryptocurrency, as these investors, who are generally
fickle-minded, are likely to show some reaction when the price
retests their cost basis. In bullish periods, these investors tend
to buy at their own cost, while if the atmosphere is bearish, they
may sell instead. As such, a successful break above this potential
resistance boundary that Bitcoin is retesting right now could
indicate the presence of bullish sentiment among the STHs. BTC
Price At the time of writing, Bitcoin is trading at around $67,200,
up almost 6% over the past week. Featured image from Dall-E,
CryptoQuant.com, chart from TradingView.com
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