After consistently struggling to execute an upward move for several days due to a broader market decline, bitcoin, the largest cryptocurrency asset, has returned to… bitcoin-is-back-above-the-average-cost-basis-of-short-term-holders?utm_source=twitter&utm_medium=sns&utm_campaign=quicktake&utm_content=maartunn” target=”_blank” rel=”noopener nofollow”>regenerate The average basis cost for short-term holders, after a slight recovery during the week. Market observers and investors often consider the increase in the basis cost for short-term holders as a bullish indication.
bitcoin Overtakes Short-Term Holders' Cost Basis
Maarten, market expert and community manager at Cryptoquantity In his recent research, he noted the development. This scenario suggests a return to profitability for investors who have held the crypto asset for less than 155 days, which in turn implies a recovery of confidence among these investors.
According to the market expert, the price of bitcoin has recently recovered to reach the price realized by short-term holders (STH). He noted that this is encouraging because when bitcoin returns to its typical cost basis, short-term holders frequently increase their holdings, establishing a support level.
It should be noted that bitcoin It has made two short-term holder price recoveries since 2023, leading to at least 30% gains each time. Therefore, with the repetition of this development, the digital asset could be primed for another 30% or even higher surge, driven by this bullish cycle.
The research said:
Recently, the bitcoin price has reclaimed the realized price of STH. This is a positive sign because short-term holders often add to their positions when bitcoin returns to its average cost basis, creating a support level. Since 2023, bitcoin has reclaimed the realized price from short-term holders twice, and each time it resulted in gains of at least 30%.
The flagship asset has managed to rally above the average basis cost for short-term holders in light of a notable decline in bullish sentiment around btc, as recently cited by Santiment, a leading on-chain intelligence platform, on Thursday. Santiment highlighted that positive comments about btc have drastically decreased despite this week’s moderate rally in the cryptocurrency market.
x.com/santimentfeed/status/1813998077432463727″ target=”_blank” rel=”noopener nofollow”>Data From the platform it was revealed that many traders are opening short positions, especially on Binance, the world's largest cryptocurrency exchange, with the expectation that bitcoin will suffer another price drop. However, since both factors raise the possibility of a surge in any crypto asset, btc could be poised for a price increase in the coming days.
The possibility of $100,000 per btc increases
While positive sentiment towards bitcoin has declined, the probability of the digital asset hitting the $100,000 mark has seen a notable increase. x.com/KobeissiLetter/status/1813943953806274859″ target=”_blank” rel=”noopener nofollow”>According According to Kalshi, a US-based legal exchange, the probability of btc hitting the pivotal level now stands at 22%. The platform’s data also revealed an 8% chance of the asset hitting the $150,000 price level and a 57% chance of hitting the $80,000 threshold.
Kalchi bases its predictions directly on traders betting on the price of btc in the future. Furthermore, the exchange believes that the prediction could play out as btc continues to rise with the odds of Donald Trump win the upcoming Republican presidential election in November of this year.
Featured image from iStock, chart from Tradingview.com
