Bitcoin price resilience hinged on short-term holder cost basis, on-chain analysis shows

exchange68September 12, 2024

0 0 1 minute read

Quick Take

Bitcoin’s price dynamics are exhibiting a pattern of consistent reliance on the short-term holder cost basis as a support level, currently standing at $29.1k. For the third time this year, Bitcoin has gravitated towards this price level, indicating its significance in the market’s perception of Bitcoin’s value.

The Short-Term Holder Realized Price, representing the average on-chain acquisition cost of coins moved within the last 155 days and not held in exchange reserves, helps us understand this phenomenon. These coins are considered the most likely to be transacted on any given day, thereby influencing Bitcoin’s price movement.

Notably, this price level provided support during two critical periods earlier this year – the banking crisis in March and a notable dip in mid-June. This recurring pattern underscores the importance of the short-term holder cost basis as a determinant of Bitcoin’s price resilience.

Analyst

James Van Straten

Former Lead Analyst at CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century’s paramount invention.

Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.