Bitcoin Bounces Back Near Whales’ Cost Basis 📈🐋

Bitcoin Bounces Back Above $66,000 following Short-Term Holder Whale Pressure

Bitcoin had recently experienced a drawdown that brought its price close to the Realized Price of short-term holder whales. Despite the pressure on these large investors, BTC managed to stay above this critical level.

Understanding Realized Price

The Realized Price is an on-chain indicator that tracks the acquisition price of the average investor. When the spot price of Bitcoin is above this level, it indicates unrealized profits for investors. Conversely, being below the Realized Price signifies market losses.

Short-Term Holder Whales

Short-term holder whales are BTC investors who purchased coins within the last 155 days and hold over 1,000 BTC. Their Realized Price reflects the average buying price over the past five months.

STH whales: Investors who bought BTC in the last five months.
Realized Price: Average whale buying price over the past five months.

Market Trends

Over the last decade, the Realized Price of short-term holder whales has fluctuated, indicating their average cost basis. Long-term holder whales, on the contrary, show a lower cost basis, potentially leading to significant gains for patient investors.

Recent Market Movements

During the recent drawdown, BTC approached the Realized Price of short-term holder whales, triggering a potential market reaction. Historically, such retests have led to buying reactions, contributing to price rebounds like the one near $60,700.