Bitcoin Is Currently Near Short-Term Holder Cost Basis
In a new on X, analyst Root shared a chart revealing that the BTC price has recently been retesting the short-term holders’ cost basis or the realized price (STHs).The “realized price” here measures the average price at which Bitcoin investors acquired their coins. When the spot price is trading above this indicator, the holders are in a state of profit right now, while below the metric implies the market is in loss.
This realized price is for the entire investor base but can be defined only for specific segments. In the context of the current discussion, the holder group of interest is the “short-term holders” (STHs).
The STHs include all investors who purchased their coins less than 155 days ago. Their average cost basis should, thus, lie inside the price range of the past five months. Here is a chart that shows how the realized price of the Bitcoin STHs has changed over the past few years:Looks like the spot price of the asset has approached this metric in recent days | Source:As displayed in the above graph, Bitcoin briefly broke above the STH realized price during the latest rally above the $28,000 level. Still, with the pullback, the cryptocurrency has plunged under the metric again. The STH cost basis has been historically important for the asset, as breaks above the level generally mean bullish winds. At the same time, plunges under have often brought with them bearish momentum.
Bitcoin had been enjoying support at this level during the rally in the first half of the year, so if it can reclaim the line again, it would be an optimistic sign for things to come.
BTC Price
At the time of writing, Bitcoin is trading at around $27,400, up 4% in the last week.BTC has lost much of its recovery | Source: