Analysts explained how Bitcoin's key indicators have returned to levels considered healthy for the bull market's uptrend.
Realized prices for short-term Bitcoin holders are no longer rising rapidly
new post At X, analyst James Van Straten talked about the 7-day percentage change in realized price for short-term Bitcoin holders. “Realized price” here refers to on-chain metrics that track the cost base of the average investor or address on the network.
If the value of the indicator is greater than the spot price of the cryptocurrency, it means that the entire holder can be assumed to be in a state of net profit. On the other hand, if it is below the mark, it means that the entire market is in losses.
In the context of the current topic, the realized prices only for a specific market segment, namely short-term holders (STH), are important. This cohort includes investors who purchased the coin within the last 155 days.
STH constitutes one of the two main divisions of the BTC sector based on holding time, the other group being known as long-term holders (LTH).
Statistically, the longer an investor holds a coin, the less likely they are to sell it at any time. As such, STH is considered to include market underdogs, while LTH represents resolute HODLers.
Here is a graph shared by an analyst showing the trend of STH's realized price and its 7-day percentage change over the past few years.
The 7-day rate of change in the metric appears to have gone down in recent days | Source: @btcjvs on X
As seen in the graph above, the Bitcoin STH realized price has increased over the past few months as the coin's price has increased. The reason behind this trend is, of course, the fact that STH represents recent buyers and must be bought at increasingly higher prices in a bull market.
The cryptocurrency has been trading above the group's cost basis for some time, suggesting its members are reaping the benefits. Historically, this line has served as a kind of boundary between macro bearish and bullish trends, so it is a positive sign for BTC to continue trading above this line.
As Van Straten pointed out, another potential bullish sign is the fact that the index's seven-day rate of change has moderated recently. Previously, the realized price of STH had expanded at a remarkable rate, generally leading to all-time highs for the coin.
This indicator is now growing at a healthier rate, which could allow Bitcoin to continue its bull run in a sustainable manner.
BTC price
As of this writing, Bitcoin is hovering around $98,400, down more than 6% compared to last week.
Looks like the price of the coin has shot up over the past day | Source: BTCUSDT on TradingView
Dall-E, featured image from Glassnode.com, chart from TradingView.com
