Bitcoin Short-Term Holder Cost Basis Is Valued At $28,100 Currently
On-chain data suggests that the $28,100 level could be a major resistance level for Bitcoin. The short-term holders’ realized price, which represents the cost basis of the average investor in the Bitcoin market, is currently valued at $28,100. When the spot price of Bitcoin dips below this indicator, holders tend to go underwater, while breaks above the level result in profit.
Short-Term Holders vs. Long-Term Holders
Short-term holders (STHs) are investors who have been holding their coins for less than 155 days, while long-term holders (LTHs) are more resilient and tend to stay silent regardless of market sentiment.
Bitcoin’s Retests of the STH Realized Price
Retests of the STH realized price have historically been significant for Bitcoin. During bullish periods, the cost basis of STHs provides support to the price, while resistance is encountered during bearish regimes. This pattern was observed during the March and June rallies, where Bitcoin found support at the STH realized price before the recent crash.
Bitcoin’s Potential Bearish Transition
Bitcoin’s recent pullback and failure to break above the STH realized price could signal a transition into a bear market. Currently valued at $28,100, this level may be retested in the future. A rejection could confirm a bearish transition, while a successful break would suggest that bullish momentum is still alive.
Bitcoin Price and Profit
Following the latest surge, Bitcoin is trading around $27,400, with investors seeing a 6% profit over the past week.
Hot Take:
The $28,100 level has historically been significant for Bitcoin, and a successful break could indicate that the bullish momentum is still strong. However, a rejection at this level could confirm a bearish transition. Crypto investors should keep a close eye on future retests of this level to determine the direction of the market.
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