Bitcoin (BTC) surged above $62,000 on September 19, rising above the strike price of short-term holders (STH) and showing further upside potential, according to onchain data.
The STH strike price is an indicator that calculates the average purchase price at which short-term investors—those who have held their Bitcoin for less than 155 days—bought. It acts as support in an uptrend because these HODLers are likely to buy more if the price rises above their entry point.
CryptoQuant analyst Avocado_onchain explained that the STH strike price “always acts as a key support and resistance level” for Bitcoin.
“The average purchase price of short-term 1-3 month holders is an important onchain metric to watch, as it can determine the future direction of Bitcoin price.”
Over the past six months, Bitcoin has struggled to stay above this level, currently at $61,953.
Data from market analytics firm CryptoQuant shows that Bitcoin's price was hovering around $63,855 at press time, 1.4% higher than STH's strike price.
“If Bitcoin closes daily above this level, the market will continue to be positive,” said prominent analyst Ercan Sak.
Anonymous crypto analyst Coiner-Yadox added that “the bull market continues as BTC returns above the STH strike price.”
Data from TinTucBitcoin Markets Pro and TradingView shows BTC trading at $63,576 and is finding relatively strong support compared to the resistance it faces on its recovery path.
This is confirmed by data from IntoTheBlock, with the In/Out of the Money Around Price (IOMAP) model showing immediate support provided by STH’s cost basis of around $62,000 in the range of $61,625 to $63,510. This is where around 421,820 BTC was previously purchased by over 2.45 million addresses.
Any attempt to cut prices is likely to be met with aggressive buying from this group of investors looking to increase their profits.
Additional data from CryptoQuant reveals an increase in Taker Ratio on centralized exchanges (CEXs).
The Buy Sell Taker Ratio is an important indicator used by traders to gauge market sentiment and potential price moves. A ratio above one indicates more takers are buying than selling, indicating bullish sentiment, while a ratio below one indicates the opposite.
The chart below shows that the ratio increased from 0.93 on September 14 to 1.052 on September 16, indicating strong buying pressure on CEXs.
Overall, the spike in the Taker Ratio shows that a large number of investors are currently buying Bitcoin in the hope that the price will increase further.
This shows aggressive buying—a potential sign of short-term bullish momentum.
This article does not contain investment advice or recommendations. All investment and trading decisions involve risk, and readers should conduct their own research before making any decision.
