The crypto market has been trending negatively recently, but there is hope for Bitcoin.

- The average buy price of short-term Bitcoin holders (1-3 months) often acts as a critical level of support and resistance.

- These key points are clearly visible on the chart, where Bitcoin price either breaks or is supported by this average buy price, triggering a significant rally.

- Conversely, if the short-term holders’ realized price acts as resistance and Bitcoin fails to break through it, a bearish trend occurs.

- A recent example is when Bitcoin reached $73K but failed to break through the average buy price of short-term holders, resulting in a bearish move.

- With the announcement of a 50bp interest rate cut by the US Federal Reserve, Bitcoin is again trying to break through the average buy price of short-term holders.

- This average buy price of short-term holders is a key on-chain metric to monitor, as it can determine the future direction of Bitcoin’s price.