Bitcoin News Today: Short-Term Holders Could Determine Bitcoin’s Next Move

Bitcoin's recent price movements have drawn attention to the potential significance of the short-term holder (STH) cost basis as a support level. On-chain data suggests that the price of Bitcoin is approaching the realized cost basis of investors who have held their Bitcoin for the past 155 days. This figure, currently at approximately $107,000, is considered a psychological barrier for STHs, who are often more susceptible to market volatility due to their relatively recent acquisition of the asset [1].

Analysts, including CryptoQuant’s Axel Adler Jr., highlight that the STH realized price has historically played a pivotal role in shaping Bitcoin’s price dynamics. In bullish environments, STHs tend to view dips near this level as buying opportunities, reinforcing it as a support line. However, in bearish conditions, they are more likely to sell off to mitigate losses, making the level a potential source of resistance [1].

The proximity of Bitcoin’s price to the STH realized price is further compounded by its positioning near the 200-day simple moving average (SMA), currently at $100,700. A retest of the zone bounded by these two levels could serve as a critical inflection point for the cryptocurrency’s price trajectory [1]. Recent price movements have brought the asset close to this threshold, raising questions about whether the STH cost basis will hold or if further downward momentum will prevail.

According to data, Bitcoin recently dipped to around $108,800 but has since rebounded slightly to $109,800. While this suggests a degree of resilience, it also underscores the fragility of current price stability. If Bitcoin were to break below the $107,000 level, it could trigger further selling pressure from STHs, potentially leading to a more pronounced downward correction [1].

The behavior of STHs in response to price retests of their realized cost basis is an essential indicator of broader market sentiment. If STHs choose to accumulate during the current pullback, it may signal growing confidence in Bitcoin’s long-term value. Conversely, a wave of selling would indicate a shift toward bearish sentiment and could extend the current correction phase. Historical patterns suggest that these dynamics are not uncommon and reflect the broader psychology of market participants [1].

Source: [1] Bitcoin Slipping Down, $107,000 Next Support? (https://cryptorank.io/news/feed/1169b-bitcoin-slipping-down-107000-next-support)