Bitcoin Trend Stays Strong 💎 – Glassnode Highlights Key Met
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Updated at: 3 hours ago
{"content":"Bitcoin Trend Stays Strong 💎 – Glassnode Highlights Key Metric to Watch
On-chain analytics startup Glassnode says Bitcoin's price trend is positive as long as it trades above the short-term holder cost basis.
Bitcoin Stays Above Short-Term Holder Price
Glassnode wrote on X on Bitcoin short-term holders' realized price. The “Realized Price” indicates the average investor or address's cost base on the BTC network.
The investors as a whole have net unrealized profit when the measure exceeds BTC's current price. However, it being below the asset's value indicates a market loss.
Short-term holders' Realized Price is relevant to this subject. Investors that bought tokens within 155 days are in this group.
Glassnode contributed this graphic showing the STH Bitcoin Realized Price movement over the past several years:
Bitcoin retested the STH Realized Price at the start of the month and found support, as seen in the graph. Coin prices have recovered since then.
This bull market has seen the STH Realized Price behave as a support barrier several times. Investor psychology may explain the trend.
The longer an investor retains their coins, the less likely they are to sell them. However, because to their limited holding duration, STHs are often impulsive and make panic trades during market changes.
STHs might panic when the cryptocurrency retests break-even. When markets are bullish, people buy. STHs see cost basis drawdowns as dip-buying opportunities.
STHs sell during bearish times when their Realized Price rises, anticipating the asset would fall again and put them back at a loss.
Bitcoin remains above the STH Realized Price. “As long as the price respects this level, the trend remains constructive,” says the analytics company. losing this support has corresponded with contractions or pullbacks.”
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