Emily Walker
An analyst has indicated that a significant Bitcoin indicator has returned to levels that may signal robust conditions for a bullish market trend.
Stable Growth in Bitcoin Short-Term Holder Realized Price
In a recent update on X, analyst James Van Straten discussed the weekly changes in the Realized Price for Bitcoin’s short-term holders (STHs). The term “Realized Price” refers to an on-chain metric that tracks the average cost at which investors or addresses have purchased Bitcoin.
When this indicator surpasses the cryptocurrency’s market price, it suggests that holders are generally profiting. Conversely, if it falls below the spot price, it indicates that the market is at a loss.
This analysis focuses specifically on the short-term holders, which include those who acquired Bitcoin within the last 155 days.
STHs represent one of the two key segments in the Bitcoin market based on holding duration, the other being long-term holders (LTHs).
Statistically, the longer investors retain their coins, the more likely they are to hold onto them, with STHs often viewed as the more speculative players in the market and LTHs as the steadfast supporters.
The analyst presented the following chart illustrating the trends in STH Realized Price and its weekly changes over recent years:
The chart demonstrates that the Realized Price for Bitcoin’s STHs has increased in recent months alongside the price surge of Bitcoin. This rise is expected, as recent buyers have had to acquire their coins at progressively higher prices during the market upswing.
Bitcoin has consistently traded above the cost basis for this group, suggesting its members are enjoying profits. Historically, this threshold has acted as a dividing line between bearish and bullish market conditions, with Bitcoin’s sustained trading above this level being an encouraging sign.
Moreover, Van Straten noted that a recent moderation in the 7-day change of this indicator presents another optimistic signal. Previously, the STH Realized Price was escalating at a rapid pace, which typically precedes market peaks.
Now, with growth stabilizing into healthier patterns, Bitcoin appears poised to maintain its bullish momentum in a sustainable manner.
Current Bitcoin Price
As of now, Bitcoin’s price is approximately $98,400, reflecting a decline of over 6% in the past week.