On-chain data shows that bitcoin price is reiterating the latest cost basis level associated with the short-term holder group.
bitcoin price has surpassed the final basis cost for short-term holders
As CryptoQuant author Axel Adler Jr. explained in a new article x.com/AxelAdlerJr/status/1814970591654404339″ target=”_blank”>mail At x, bitcoin only has one short-term holders’ realized price left to surpass. The “realized price” here refers to an on-chain indicator that tracks the average cost basis of investors in the btc market.
Investors make net profits when the spot price of the cryptocurrency is above this level. On the other hand, if it is below the metric, it suggests the predominance of losses in the market.
In the context of the current discussion, it is not the realized price of the entire market that is of interest, but rather that of a small segment of it. The group in question is a section of “short-term holders” (STH), which generally includes investors who bought their coins in the past six months.
Below is the chart showing the price trend realized specifically for STHs that have been held for between one and three months:
<img src="https://technicalterrence.com/wp-content/uploads/2024/07/Last-resistance-Bitcoin-now-tests-the-final-cost-basis-for.jpeg" alt="bitcoin STH Realized Price” />
This segment of STHs sits right in the middle of the pack, between newcomers who have just purchased the asset and those who have started to gain some resilience, with a possible promotion to the long-term holder (LTH) group on the way.
According to the analyst, bitcoin has already surpassed the realized price of the other two parts of the STH group, meaning that investors who dip into them now would make a profit.
The chart shows that the realized price of investors between 1 and 3 months, the level that btc has yet to surpass, is valued at $67,100. The price of this cryptocurrency is currently floating, suggesting that this cohort’s gains are cancelling out their losses.
STH cost basis levels have historically been relevant to the cryptocurrency, as these generally fickle-minded investors are likely to show some reaction when the price retests their cost basis.
In bullish periods, these investors tend to buy on their own, while if the environment is bearish, they may sell instead. Therefore, a successful breakout above this potential resistance boundary that bitcoin is retesting right now could indicate the presence of bullish sentiment among STHs.
btc Price
At the time of writing, bitcoin is trading at around $67,200, up nearly 6% from last week.
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