Bitcoin (BTC) price has experienced mounting demand-side pressure, causing it to rally more than 23% over the last two weeks to hit a 2-month high at $68,583 on July 22. During this uptrend, BTC climbed above its short-term holder (STH) cost basis, highlighting the “strength of the prevailing uptrend,” according to market intelligence firm Glassnode.
The recent surge in BTC price above $68,000 has “been a welcome relief for Bitcoin Short-Term Holders (STHs),” Glassnode wrote in its “Week On-chain” newsletter published on July 24.
According to the onchain data provider, this cohort of investors saw more than 90% of their “supply fall into a loss” following the drawdown to July 5 lows of $53,500, putting them into a financially stressful position.
“This rally has now broken back above the STH cost basis and returned 75% of their held supply to an unrealized profit. This can be seen within the STH-MVRV metric, which has now recovered above the break-even level of 1.0.”Bitcoin short-term holder MVRV. Source: Glassnode
Bitcoin STH cost basis—or realized price—is a metric that represents the average acquisition price of Bitcoin for investors who are considered short-term holders, defined by the movement of coins held for less than 155 days.
Data from LookIntoBitcoin reveals that BTC’s breach of the $68,000 level on July 22 saw it rise above the STH realized price at the time, which was $65,329.
Bitcoin short-term holder realized price. Source: LookIntoBitcoin
In addition, the latest recovery managed to pull the MVRV of all STH cohorts above 1, showing how their profitability has changed across groups of recent buyers.
“At present, all constituents of the Short-Term Holder cohort have returned to positive profitability, which highlights the strength of the prevailing uptrend. This is likely to be positive for overall investor sentiment.”Bitcoin STH MVRV age bands. Source: Glassnode
“The MVRV ratio shows that Bitcoin’s price has managed to stay above the average cost basis of short-term holders,” declared Crazzyblockk, a pseudonymous analyst at CryptoQuant.
Crazzyblockk explained that the…
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