**Bitcoin Price Analysis: Short-Term Holders' Average Buy Price as Key Metric**
The average buy price of Bitcoin holders who have held for 1-3 months has consistently served as a critical support and resistance level. Historical data shows that when Bitcoinâs price breaks through or is supported by this average buy price, significant price increases often follow. Conversely, failure to break above this level has led to bearish trends.
A recent example occurred when Bitcoin reached $73K but failed to surpass the average buy price of 1-3 month holders, resulting in a bearish movement. With the U.S. Federal Reserve's recent 50bp rate cut announcement, Bitcoin is once again attempting to break through this crucial level.
Monitoring the average buy price of 1-3 month short-term holders remains essential for predicting Bitcoinâs future price movements.
