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 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.
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.
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
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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