The recent rally in Bitcoin’s price has led to significant profits for short-term holders, with over 75% now in the green. This surge, highlighted in a July 24 report, has broken above the short-term holders’ (STH) cost basis, pushing 75% of their held supply into an unrealized profit. The STH-MVRV metric, which measures the market value to realized value for short-term holders, has recovered above the break-even level of 1.0, indicating a favorable trend for these investors. This development offers substantial relief, especially for those who saw over 90% of their supply in the red in late July.

Key Support and Resistance Levels

Bitcoin’s price has settled above a crucial support level despite a $3.9 billion futures expiry that threatened to push it down to $63,000. Popular crypto analyst Rekt Capital noted that Bitcoin has successfully confirmed $65,000 as support and is now expected to trade within the $65,000-$71,500 range. However, Bitcoin faces significant resistance at the $68,000 mark. According to data, nearly $700 million worth of leveraged short positions could be liquidated if Bitcoin rises above this psychological barrier. Liquidations could exceed $1 billion if the price reaches $68,500, contingent on inflows from U.S. spot Bitcoin exchange-traded funds (ETFs), which have slowed down since July 23.

Conclusion

The recent Bitcoin rally has positively impacted short-term holders, pushing a majority into profitability. While the support at $65,000 provides a stable base, significant resistance at $68,000 poses a challenge. The potential for substantial short liquidations above this level could drive further price increases, depending on ETF inflows. As Bitcoin continues to navigate these critical thresholds, the market remains poised for potential volatility and further gains.