Bitcoin reclaims STH realized price, indicating potential bullish momentum.
Bitcoin has just recaptured its short-term holder (STH) and realized a price move that could finally kickstart the next leg up. This firmly establishes a make-or-break moment for Bitcoin, as it had lost its critical bull market trendline for the first time in almost a year during June.
CryptoQuant, an on-chain analytic platform, indicates price tests happening one more time against STH realized price. This is likely an essential benchmark for short-term holders who hold their average BTC holdings for 155 days or less. It is a break-even line for the same lot. Historically, it has provided formidable support for higher time frames during market phases.
Bitcoin’s Price Retakes STH Realized
“Recently, Bitcoin’s price has re-attained the STH Realized Price,” encapsulated J. A. Maartunn on the Quicktake blog, published some months ago. He noted that the previous level was rare historically, as the cryptocurrency had only dropped below the STH realized price for a few days since the bull market began. A profit gain of over 30% was posted in the previous two re-attainment periods.
This is a positive sign because short-term holders often add to their positions when Bitcoin returns to their average cost basis, creating a support level.
Although analytic firms vary in estimates of the STH realized price, Glassnode, an on-chain analytics provider, put the figure at $64,300 in the latest weekly newsletter published on July 16. The $65,000 price level has become highly critical as bullish investors eye a move to flip the resistance level to support sections of the bullish market.
This is one of the largest declines in STH profitability on record. This suggests that a significant number of ‘top buyers’ have seen their portfolio profitability challenged in recent weeks.
Market analysts have not been blind to the implications of this price action. A known trader and ex-fund manager, Aksel KibarOn, said on his X (formerly known as Twitter) page, “This marks the fifth month $BTCUSD has managed to hold its stand around the critical $65K resistance.” In his statement, there is a bias to the upside, at least regarding moving averages.
“I see this as very bullish long-term. Sticking to a resistance and no intention of selling off is usually a sin of pending breakout.”
Yet, as Bitcoin approaches these pivotal resistance levels, analysts warn of the potential for excessive exuberance. A famous crypto trader, JT, noted that Bitcoin’s daily trading patterns continue to show that a breakout will have to be made above a series of Fibonacci’s retracement levels at the moment that are serving to block any moves towards a new all-time high. He adds that the trading volume surged significantly in and around those previous lows of $53,000 before plunging significantly.
BTC/USD chart (screenshot). Source: JT/X
“Volume was surreal into this pump of the $53K low and has now dropped off a cliff,” he said, warning that current levels are going below average.
The market’s volatility underscores the significance of the ongoing price action and the importance of monitoring volume trends. As Bitcoin navigates these critical price levels, traders and investors remain alert to the potential for substantial gains or losses in the coming weeks.
Reclaiming recently, the Bitcoin short-term holder realized price should be critical in its markets. It should relate not only to opportunities but also to risks. While the cryptocurrency remains concentrated around key fighter resistance levels, stakeholders should pay keener attention to dynamics in the markets and trading volumes that may spell out how this is likely to translate into, for example, the future trajectory of Bitcoin.
