Fundamental Bitcoin Metric Back to Healthy Bull Levels, Analyst Says
An expert described how an important Bitcoin indicator is showing signs of a bull market rise.
Bitcoin Short-Term Holder Saw Price Slowing
Analyst James Van Straten discussed the 7-day Realized Price movement of Bitcoin short-term holders in a recent X article. The “Realized Price” is an on-chain indicator that tracks the average investor or address's cost basis.
The indicator's value larger than the cryptocurrency's current price indicates net profit for all holders. However, being below the threshold indicates market loss.
Only short-term holders' Realized Price is relevant to this subject. This group contains investors who acquired currencies within 155 days.
Long-term holders (LTHs) and STHs are the two primary BTC sector divides by holding time.
Statistics show that the longer an investor hangs onto their coins, the less likely they are to sell, hence STHs are the market's weak hands and LTHs are the steadfast HODLers.
The analyst submitted this chart showing the Realized Price of STHs and its 7-day rate of change over the previous several years:
As seen in the graph above, the Bitcoin STH Realized Price has increased in recent months as the coin's price has rallied. Because STHs reflect recent purchasers, they must buy at higher prices during a bull run.
This cohort has been profiting from the cryptocurrency's above-cost base for a while. BTC trading over the line is a favorable indicator since it has traditionally divided macro negative and bullish periods.
As Van Straten noted, the indicator's 7-day rate of change has cooled lately, which may be positive. The Realized Price of STHs was rising rapidly, which usually leads to coin tops.
Bitcoin may prolong its bull run now that the signal is expanding more steadily.
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