On-chain data shows that short-term bitcoin holding whales have a cost basis above $64,000, which could be a potential resistance point for btc.
bitcoin is not far from the price reached by short-term holders after the rally
As noted by one analyst in a CryptoQuant Quicktake mailbtc price had fallen below the realized price of short-term holding whales earlier. The “realized price” here refers to an indicator that tracks the average cost basis currently shared by investors in a particular group.
When the asset's spot price is below this metric, holders belonging to the cohort are in a state of net unrealized loss. Similarly, if it is above the indicator, it implies that the group is enjoying profits.
In the context of the current topic, there are two market segments of interest: short-term holders and long-term holders. Short-term holders and long-term holders are the two main divisions of the bitcoin sector based on holding time.
Short-term holders (STH) are investors who have purchased their coins in the last 155 days, while long-term holders (LTH) include hands that have held their coins idle for longer than this period.
“Whales” generally refer to entities that carry at least 1,000 btc in their wallets, so STH and LTH whales would naturally correspond to large members of the respective cohorts.
Now, here is a chart showing the trend in realized price for these two groups of bitcoin over the past few years:
<img src="https://technicalterrence.com/wp-content/uploads/2024/08/Bitcoin-recovers-strongly-but-beware-of-resistance-at-64000.png" alt="bitcoin Realized Price” />
As shown in the chart above, the bitcoin spot price had fallen considerably below the price realized by STH whales during the recent market crash. However, with the price recovery, it has now come close to that level.
The average base cost of STH whales is between $64,000 and $65,000, so it could soon be tested again. However, such a retest could prove difficult for the cryptocurrency.
STHs represent the weak hands of the market, which can be sensitive to changes in the market. Cost basis is naturally an important level for any investor, but this particular group can be prone to react when such a retest occurs.
Since most STH whales have suffered losses recently, some may be desperately waiting for a retest to take place so they can exit the market at their breakeven level. It remains to be seen whether bitcoin will overcome this hurdle if the current rally continues to that point.
While STH whales are suffering losses, LTH whales continue to make huge profits as their realized price is only $22,000, implying that their patience has paid off.
btc Price
bitcoin had briefly surpassed $62,000 over the past day, but the coin's price has since retreated to $60,500.
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