Crucial Bitcoin Metric Back To Healthy Bull Levels, Analyst Reveals

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As a seasoned analyst with over two decades of experience under my belt, I find the current state of the Bitcoin market particularly intriguing. The recent trend in the Realized Price of Short-Term Holders (STHs) is a telltale sign that the bull-market uptrend might be healthy and sustainable.

A financial expert has clarified that a significant Bitcoin metric has returned to points suggesting a robust upward trend in the bull market, which could be favorable.

Bitcoin Short-Term Holder Realized Price No Longer Growing Too Fast

In a fresh update on platform X, analyst James Van Straten discussed the recent trends in the 7-day adjusted price movement of Bitcoin for short-term holders. The term “Realized Price” in this context represents an on-chain indicator that monitors the average purchase cost for typical investors or network addresses.

If the indicator’s value surpasses the current price of the cryptocurrency, it suggests that, on average, the holders are experiencing a net profit. Conversely, when the indicator falls below the price, it indicates that the overall market may be incurring losses.

For our ongoing discussion, we’re focusing on the selling prices specifically for a certain market section: those who are short-term holders (STHs). These investors have recently acquired their assets within the last approximately 155 days.

In the realm of Bitcoin trading, Short-Term Holders (STHs) and Long-Term Holders (LTHs) represent the two primary categories. The STHs are identified by their shorter holding periods, while LTHs are those who hold onto their Bitcoins for a more extended period.

In essence, data shows that as investors keep their assets for a longer period, it becomes increasingly unlikely that they’ll decide to sell. Therefore, Short-Term Holders (STHs) are often viewed as the less committed market participants, while Long-Term Holders (LTHs) represent those with strong resolve in holding onto their assets.

Let me share with you a graph provided by the analyst which illustrates the development of the Realized Price of the STHs along with its weekly percentage change over the past couple of years.

From the graph, it’s clear that the Realized Price of Bitcoin (STH) has been rising over the past few months due to the coin’s price rally. This trend can be attributed to the fact that STHs, or recent buyers, have had to buy at progressively higher prices during a bull market.

For some time now, the value of this cryptocurrency has exceeded its initial purchase price for its investors, suggesting they’ve been making profits. Traditionally, this level has acted as a dividing line between broader bearish and bullish market conditions. Therefore, BTC staying above it is a promising indication.

According to Van Straten’s observation, a possible positive sign is the recent slowdown in the 7-day change rate of the indicator. Previously, the Realized Price of the STHs was increasing significantly, which typically signals a peak for the coin.

As the indicator experiences a steady increase, there’s a good chance that Bitcoin might persistently rise in a stable and long-term fashion.

BTC Price

At the time of writing, Bitcoin is floating around $98,400, down more than 6% over the last week.

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2024-12-25 23:26