Bitcoin rally above short-term holder metric has traders calling for new BTC price highs
2024.09.19 17:40
Bitcoin (BTC) rallied above $62,000 on Sept. 19, rising above its short-term holder (STH) realized price and showing potential for further gains, according to onchain data.
The STH realized price is a metric that calculates the average price at which short-term investors—those who have held their coins for less than 155 days–have purchased their Bitcoin. It acts as support in uptrends because these holders are more likely to buy if the price rises above their entry point.
CryptoQuant analyst Avocado_onchain explains that STH realized price “has consistently acted as a critical support and resistance level” for Bitcoin.
“The average buy price of these 1-3 month short-term holders is a key onchain metric to monitor, as it can determine the future direction of Bitcoin’s price.”
Over the past six months, Bitcoin has struggled to remain above this level, now at $61,953.
Data from market intelligence firm CryptoQuant shows Bitcoin price hovered around $63,855 at the time of publication, 1.4% above the STH realized price.
Bitcoin STH realized price. Source: CryptoQuant
Popular analyst Ercan Sak said, “If Bitcoin makes daily closings above this level, the market will continue to be positive.”
Pseudonymous crypto analyst Coiner-Yadox added that the “bull market resumes when BTC gets back above” the STH realized price.
Data from Cointelegraph Markets Pro and TradingView showed that BTC traded at $63,576 and was sitting on relatively robust support compared to the resistance it faced in its recovery path.
This was corroborated by data from IntoTheBlock, whose In/Out of the Money Around Price (IOMAP) model showed that the immediate support provided by the STH cost basis of around $62,000 was within the $61,625 and $63,510 price range. This is where approximately 421,820 BTC were previously bought by more than 2.45 million addresses.
Bitcoin IOMAP chart. Source: IntoTheBlock
Any attempts to pull the price lower may be met by aggressive buying from this cohort of investors who would like to increase their profits.
Related: Bitcoin bulls target $64K BTC price hurdle as US stocks eye new record
Additional data from CryptoQuant reveals a spike in Taker Buy Sell Ratio across centralized exchanges (CEXs).
The Taker Buy Sell Ratio is a key metric used by traders to gauge market sentiment and potential price movements. A ratio above one suggests more takers are buying than selling, indicating bullish sentiment, while a ratio below one suggests the opposite.
The chart below indicates that this ratio had spiked from 0.93 on Sept. 14 to 1.052 on Sept. 16, signaling exceptionally strong buy-side pressure on the CEXs.
Bitcoin Taker Buy Sell Ratio. Source: CryptoQuant
Generally, the spike in the Taker Buy Sell Ratio suggests that a significant number of investors are currently buying Bitcoin in anticipation of further price increases.
This indicates a surge in aggressive buying — a potential sign of more bullish momentum in the short-term.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
