- Short-term holders fueled Bitcoin’s price surge as the Short-Term Holder Cost Basis became crucial.
- BTC’s upward trend persisted, but caution arose from technical indicators signaling potential weaknesses.
Bitcoin [BTC] has set its gears in motion, forging ahead with its price trajectory. According to a recent Glassnode report, the pulse of this momentum may find its beat within the hands of short-term holders.
Read Bitcoin’s [BTC] Price Prediction 2023-24
A closer look at the Bitcoin STH Cost Basis
Glassnode recently shed light on the significance of Short-Term Holders and their impact on the accumulation of Bitcoin holdings. The value of these short-term holdings became evident when observing the clustering of coins near a crucial threshold known as the Short-Term Holder Cost-Basis (STH-CB).
Approximately 9.92% of the circulating supply, equivalent to 1.7 million BTC, excluding those held on exchanges, assembled within a price range of about $1000 relative to the STH-CB of $26,400.
Source: Glassnode
The price level also emerged as a focal point of great interest for assessing the local momentum. Moreover, recent fluctuations in Bitcoin’s price have revolved around the Short-Term Holder Cost-Basis of $26.4K.
This implied that the STH-CB continued to play a pivotal role in determining the direction and strength of the local trend.
STH sees profitable trade
As Bitcoin’s price momentum remained strong, Short-Term holders experienced a favorable development in the SOPR (Spent Output Profit Ratio).
The Short-Term SOPR serves as a valuable metric in Bitcoin analysis, gauging the profitability of coins that are being transacted or spent. It quantifies the ratio between the selling price of Bitcoin at the time of its last movement on the blockchain and the price at which it was originally acquired.
Source: CryptoQuant
Following a decline below 1 around June 6, the SOPR recently crossed this threshold as the price trended upwards again. As of this writing, the SOPR stood above one, indicating selling pressure. It also highlighted that the transacted coins were generating profits for their holders.
Bitcoin continues upward trend, but…
Upon examining the daily timeframe chart of Bitcoin, it became evident that it remained on an upward trajectory. As of this writing, BTC was trading at around $26,600, showcasing a modest increase in value.
However, it continued to trend below its short-term Moving Average, which acted as an immediate resistance level at approximately $27,000.
Source: TradingView
How much are 1,10,100 BTCs worth today?
Furthermore, the Moving Average Convergence Divergence (MACD) indicated a positive shift as it crossed above the zero line, signifying a mild bullish trend. Nevertheless, a closer look at the Aroon indicator revealed that the current uptrend in Bitcoin was still relatively weak.
The Aroon up value remained low, while the Aroon down value stood strong above 70. This suggested that the downward pressure remained prominent compared to the upward movement.