Bitcoin Surges 3% to $109,500, Trading Above Short-Term Holder Realized Price

Bitcoin has recently been trading within a short-term price band, with its upper limit currently at $117,000, according to the on-chain analytics firm Glassnode. This band is defined by two levels relevant to short-term holders (STHs), who are investors that have purchased their coins within the past 155 days.

The indicator of interest here is the Realized Price, which tracks the average cost basis or acquisition level of Bitcoin addresses belonging to STHs. When the value of this metric is greater than the asset’s spot price, it indicates that STHs as a whole are in a state of net unrealized profit. Conversely, if it is below the coin’s value, it suggests that the cohort is predominantly in a state of loss.

Glassnode shared a chart illustrating the trend in the STH Realized Price and several lines corresponding to different standard deviations (SDs) from it. The chart shows that Bitcoin's price has traded within a range defined by the -1 SD and +1 SD lines over the past six months. The STHs, comprising new entrants and fickle-minded traders, tend to react easily to market happenings, leading to interactions between the cryptocurrency’s price and the STH Realized Price due to panic buying or selling.

Currently, Bitcoin is trading above the STH Realized Price after finding support at this level last month. The next level ahead for the asset is the +1 SD, which is around $117,000. In this period of sideways movement, Bitcoin has only tested this line once. Glassnode notes that this level can be seen as the upper band of the short-term price action, and it remains to be seen whether Bitcoin will test this level in the near future.

Bitcoin has experienced a surge of more than 3% over the past day, bringing its price to $109,500. This recent price movement highlights the dynamic nature of the cryptocurrency market and the potential for significant price fluctuations within short-term price bands.