An
analyst
has
pointed
out
how
Bitcoin
is
back
above
the
cost
basis
of
the
short-term
holders,
a
sign
that
can
be
bullish
for
the
asset.
Bitcoin
Is
Back
Above
The
Realized
Price
Of
Short-Term
Holders
As
explained
by
CryptoQuant
community
manager
Maartunn
in
a
new
post
on
X,
BTC
has
reclaimed
the
Realized
Price
of
the
short-term
holders.
The
“Realized
Price”
here
refers
to
an
indicator
that,
in
short,
keeps
track
of
the
average
cost
basis
of
the
investors
in
the
Bitcoin
market.
When
the
value
of
this
metric
is
greater
than
the
cryptocurrency’s
spot
price,
the
average
holder
in
the
sector
can
be
assumed
to
be
carrying
some
unrealized
profit.
On
the
other
hand,
the
indicator
being
under
the
BTC
price
implies
the
dominance
of
losses
in
the
market.
Related
Reading
In
the
context
of
the
current
discussion,
the
Realized
Price
of
the
entire
userbase
isn’t
of
interest,
but
that
of
only
a
part
of
it:
the
short-term
holders
(STHs).
The
STHs
refer
to
the
Bitcoin
investors
who
purchased
their
tokens
within
the
past
155
days.
This
cohort
makes
up
one
of
the
two
main
divisions
of
the
BTC
sector
based
on
holding
time,
with
the
other
part
of
the
market
being
known
as
the
long-term
holders
(LTHs).
Now,
here
is
a
chart
that
shows
the
trend
in
the
Bitcoin
Realized
Price
specifically
for
this
cohort
over
the
past
year:
price
of
the
asset
appears
to
have
surged
above
this
line
recently
|
Source:
@JA_Maartun
on
X
As
is
visible
in
the
above
graph,
the
Bitcoin
spot
price
had
plunged
under
the
Realized
Price
of
the
STHs
last
month,
meaning
that
this
group
had
gone
into
a
state
of
net
loss.
After
spending
some
time
below
the
line,
though,
the
cryptocurrency
has
risen
above
the
metric
with
the
latest
rally,
thus
bringing
this
cohort
back
into
profit.
“This
is
usually
a
very
bullish
sign,”
notes
Maartunn.
The
chart
shows
that
the
last
time
the
asset
broke
back
above
this
level
after
an
extended
stay
below
it
was
last
October.
This
surge
back
above
the
line
kicked
off
a
run
that
would
eventually
result
in
the
coin
setting
a
new
all-time
high
(ATH).
As
for
why
BTC
breaking
above
the
STH
Realized
Price
has
historically
been
something
bullish,
the
answer
lies
in
investor
psychology.
The
STHs,
who
are
relatively
inexperienced
hands,
can
be
sensitive
to
price
movements.
More
specifically,
they
are
likely
to
show
a
reaction
when
their
average
cost
basis
undergoes
a
retest.
When
these
investors
are
bearish,
they
may
decide
to
sell
when
the
price
rises
to
their
cost
basis,
as
they
may
worry
that
the
surge
won’t
last.
Similarly,
they
react
by
accumulating
further
instead
during
bullish
periods,
as
they
could
see
their
cost
basis
as
a
profitable
point
for
buying
more.
Related
Reading
As
BTC
has
been
able
to
surge
past
this
line
recently,
it
wouldn’t
appear
that
the
STHs
are
offering
resistance
right
now,
and
thus,
a
bullish
sentiment
is
still
dominant
among
them.
BTC
Price
Bitcoin
had
recovered
above
$66,000
yesterday,
but
the
coin
has
since
seen
some
pullback
as
its
price
is
now
down
to
$64,800.
like
the
BTC
price
has
surged
overall
in
the
last
few
days
|
Source:
BTCUSD
on
TradingView
Featured
image
from
Dall-E,
CryptoQuant.com,
chart
from
TradingView.com
Go to Source
Author: Keshav Verma
