Summary
- An important Bitcoin metric turned bullish, as BTC trades near $65,000.
- BTC is back above the average cost basis of short-term holders.
Bitcoin is trading near the important level of $65,000 today, as an important metric is addressed by CryptoQuant.
The on-chain data/analytics provider shared a post via X, noting that Bitcoin is back above the average cost basis of short-term holders.
The Bitcoin Short-Term Holder (STH) Realized Price is a metric that represents the average acquisition price of Bitcoin for investors who are considered short-term holders. This is typically defined by the movement of coins that have been held for less than 155 days.
This metric is illustrated in the chart below, and the periods marked with red bars indicate when the BTC price is below the STH Realized Price, while the periods with the green bars are showing when the price is above it.
Recently, BTC’s price reclaimed the STH Realized Price. This is a positive sign because short-term holders are often adding to their positions when Bitcoin returns to their average cost basis, creating a support level.
According to the same notes, since 2023, Bitcoin has reclaimed the short-term holder Realized Price twice, each time resulting in 30% profits, at least, CryptoQuant contributor J. A. Maartunn wrote in his post.
Traders see the STH average cost basis as the true indicator of a bull or bear market.
The exact level of the STH realized price varies according to the source, and CryptoQuant’s estimate is a bit lower compared to others.
Surviving the Sell-Off
On-chain analytics firm Glassnode wrote in their latest edition of the weekly newsletter, The Week Onchain, published on July 16, that across the past 30 days, the STH cohort experienced a dramatic decline in profitability.
More than -66% of their supply moved into an unrealized loss, according to them.
In the same post, they noted that the Bitcoin market absorbed over 48,000 BTC in sell-side sourced from the German Government. They also mentioned the Mr. Gox fund distributions to creditors that have already begun.