Bitcoin Now Tests Ultimate Cost Basis for Short-Term Holders

On-chain data shows that Bitcoin price reiterates the last cost basis level associated with the short-term holder group.

Bitcoin Price Has Risen Beyond Short-Term Holder’s Ultimate Cost Basis

As explained by CryptoQuant author Axel Adler Jr. in a new publish at X, Bitcoin has only a short-term holders Realized Price to break. The “Realized Price“here refers to an on-chain indicator that monitors the average cost basis of investors in the BTC market.

Investors take net profits when the spot price of the cryptocurrency is above this level. On the other hand, being below the metric suggests loss dominance in the market.

In the context of the current discussion, the Realized Price of the entire market is not of interest, but rather of a small segment of it. The group in question is a section of the “short term holders” (STHs), largely including investors who purchased their coins in the last six months.

Below is the chart showing the trend in Realized Price specifically for STHs that have been on hold between one and three months ago:

The asset’s price appears to have retested this level recently | Source: @AxelAdlerJr on X

This segment of STHs is located right in the middle of the group, between the newcomers who have just bought the asset and those who have started to gain some resilience, with a promotion to the long term holder (LTH) group potentially coming after them.

According to the analyst, Bitcoin has already surpassed the realized price of the other two parts of the STH group, which means that investors in them would be profiting now.

The chart shows that the Realized Price of 1-3 month old investors, the only level that BTC has not yet broken, is valued at $67,100. The price of this cryptocurrency is currently fluctuating, suggesting that the profits of this cohort are canceling out their losses.

STH cost basis levels have historically been relevant for the cryptocurrency, as these investors, who are generally fickle, are likely to show some reaction when the price retests their cost basis.

In bullish periods, these investors tend to buy at their own expense, while if the atmosphere is bearish, they may sell. As such, a successful break above this potential resistance threshold that Bitcoin is retesting now could indicate the presence of bullish sentiment among STHs.

BTC Price

At the time of writing, Bitcoin is trading around $67,200, up nearly 6% from last week.

It seems that the price of the coin has been rising quite a bit recently | Source: BTCUSD on TradingView

Featured image by Dall-E, CryptoQuant.com, chart by TradingView.com

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