Will Bitcoin Rise Again? Analysis from Glassnode

Bittime - Price Bitcoin has shown composure since hitting an all-time high of $108,135, struggling to maintain a six-figure mark for long. For example, the leading cryptocurrency lasted just a day above $100,000 before falling below $92,000 in the last week.

This sluggish price movement sparked discussions about the possibility that a top has been reached and the Bitcoin bull market may be over. However, the latest on-chain observations suggest that the flagship cryptocurrency may still have room for higher price movement.

What Is Bitcoin's Current Short Term Holder Base Cost?

In its latest post on the X platform, blockchain analytics company Glassnode revealed that Bitcoin's bull market may not be over yet. These on-chain observations are based on BTC price movements with respect to short-term holder Cost Basis (STH).

The STH Cost Basis metric tracks the average price at which short-term holders (investors who have held Bitcoin for less than 155 days) purchased their coins. It represents a psychological level for BTC investors and can serve as a technical point for analyzing price, especially during bull cycles.

Read too Why Bitcoin Crashed: BTC Price Analysis and Prediction

Generally, Bitcoin prices are above the STH Cost Basis during bull markets, indicating significant buying interest and positive sentiment from short-term traders. Conversely, when BTC prices fall below this level — as is often seen in bear markets — this means that new investors are taking losses, leading to substantial selling pressure.

Source: Glassnode/X

According to data from Glassnode, Bitcoin's price is currently about 7% above the STH Base Cost, which is currently around $88,135. Although these leading cryptocurrencies are slightly closer to Cost Basis, indications are that short-term holders are less likely to sell their assets.

If Bitcoin price manages to stay above the Cost Basis STH, this would mean a potential continuation of the current bull market. Conversely, a move below $88,000 could signal a change in trend, with the market switching from a bullish to a bearish phase.

Currently, BTC price is just above $94,000, reflecting an increase of almost 1% in the last 24 hours. According to data from CoinGecko, the flagship cryptocurrency is down more than 3% in the last seven days.

Read too Bitcoin Adoption Skyrockets: Is It Too Late to Invest in BTC?

Is Market Recovery Imminent?

The crypto market has been in bad shape over the past week, with several major assets experiencing double-digit declines. Unsurprisingly, many crypto traders are showing interest in selling their assets on various social media platforms.

Read too How to Buy Bitcoin (BTC)

Bitcoin Prices to IDR Latest 

BTC to IDR via Market Endtime

Conclusion

With this analysis, it seems that Bitcoin still has the potential to bounce back, depending on how the price can stay above the STH Cost Basis. If this trend continues, we may see a stronger bullish phase in the future.

FAQ

FAQ 1: What is Bitcoin's Short Term Holder Cost Basis?

Answer: Short Term Holder Cost Basis (STH) is the average price at which investors holding Bitcoin for less than 155 days purchased their coins. This metric serves as a psychological level and technical point for analyzing Bitcoin price, especially during bull cycles.

FAQ 2: How does the current Bitcoin price compare to the STH Cost Basis?

Answer: Currently, the price of Bitcoin is about 7% above the STH Cost Basis, which is around $88,135. This suggests that short-term holders are less likely to sell their assets, which could support the potential continuation of the bull market.

FAQ 3: What can happen if the Bitcoin price falls below the STH Cost Basis?

Answer: If the Bitcoin price falls below the Cost Basis STH, this can signal a change in trend from bullish to bearish. This means that new investors may experience losses, which could cause substantial selling pressure in the market.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Reference

Opeyemi Sule, Is The Bitcoin Bull Market Still On? STH Cost Basis Suggests So, Retrieved January 12

Author: IN