The average buy price of Bitcoin holders who have held for 1-3 months has consistently acted as a critical support and resistance level.
The yellow circles on the chart highlight areas where Bitcoin’s price either broke through or was supported by the average buy price of these 1-3 month short-term holders, leading to significant price increases.
On the other hand, when the realized price of short-term holders acted as resistance and Bitcoin failed to break above it, the price showed a bearish trend. A recent example of this is when Bitcoin reached $73K but failed to break through the average buy price of 1-3 month short-term holders, resulting in a bearish movement.
With the recent announcement of a 50bp rate cut by the U.S. Federal Reserve, Bitcoin is once again attempting to break through the average buy price of 1-3 month holders.
The average buy price of these 1-3 month short-term holders is a key on-chain metric to monitor, as it can determine the future direction of Bitcoin’s price.
Written by Avocado_onchain
