Bitcoin's Short-Term Holder Realized Price Gains Suggest Bullish Trend Continues
Summary:
Bitcoin's short-term holders (STHs) are experiencing an increase in their realized price, signalling a continued bullish trend as Bitcoin breaks the $70,000 level. Indicators, including the 1.5% rise in STH realized price, the surge in Taker Buy Sell Ratio on the HTX crypto exchange, and increased daily active addresses on the Bitcoin network, suggest possible further appreciation. This ascent is expected to persist if Bitcoin remains above the $64,000 support threshold.
Bitcoin's short-term holders (STHs) are witnessing an increase in their realized price, hinting at a positive trajectory for the digital currency as it surpasses the $70,000 benchmark on June 10. In the past week, Bitcoin's price climbed from approximately $68,000 to $70,232, which correspondingly led to a 1.5% uptick in the STH realized price—a measure of the average acquisition cost of coins moved within 155 days and stored beyond exchange reserves, stated Cryptoslate's lead analyst, James Van Straten.
Predominantly, this group includes those who invested in Bitcoin around the time of the U.S. spot Bitcoin ETF's endorsement in January, coinciding with the surge of Bitcoin's value past its former peak of $69,000 in March.
Based on Glassnode's data, Van Straten highlighted the consistent growth of STH realized price, inching towards $64,000, which attests to Bitcoin's upward momentum for over a year. He noted, "This figure serves as a decisive support line, tested by Bitcoin at the start of May. Over the past week, the STH realized price has seen a 1.5% rise indicating an upswing in short-term speculation.”
In case Bitcoin sustains above this $64,000 threshold in the upcoming months, analysts forecast a positive trend for its price, considering this level as a key support zone. Currently, Bitcoin is valued at $70,090, boasting formidable support on its lower side, contrasting the resistance which it encountered during its bounce back.
Further supporting this stance, data from IntoTheBlock's In/Out of the Money Around Price (IOMAP) model revealed sturdy support around $69,000, corresponding to the acquisition price of about 1.3 million coins by a total 2.22 million addresses.
Any attempts to undercut this price could trigger a surge of purchases from this subset of investors, aiming to amplify their gains. According to CryptoQuant, HTX crypto exchange recorded a surge in the Taker Buy Sell ratio, a fundamental metric to determine market sentiment and possible price shifts.
Ali Martinez, a standalone trader, pointed out a rare hike in this ratio to 730, signaling intensified buying pressure on the HTX platform.
The rising Taker Buy Sell ratio suggests an influx of investors procuring Bitcoin, expecting future price surges—a spike in buying often precedes considerable price leaps.
Additionally, Martinez noticed a hike in the quantity of daily active addresses on the Bitcoin network, indicating "the beginning of a reversal from the decline since March 5!" He referred to a chart from Santiment that highlighted a surge in network activity—765,480 additional addresses became operative on the Bitcoin blockchain within the past 24 hours. He said, "This spike in network use points to a favorable sign for the ongoing #BTC bull run."
This report does not serve as investment advice or recommendations. Investors should understand that every trading and investment decision brings risk, and it's best to research thoroughly before making one.
Published At
6/10/2024 10:31:19 PM
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