Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
After constantly struggling to execute a bullish move for several days due to a broader market decline, Bitcoin, the largest cryptocurrency asset has once again reclaimed the average cost basis for short-term holders, following a slight recovery during the week. Market observers and investors frequently consider the rise over the cost basis for short-term holders as a bullish indication.
Bitcoin Surges Past Short-Term Holders Cost Basis
Maarten, a market expert and community manager at CryptoQuant pointed out the development in his recent research. This scenario suggests a return to profitability for investors who have owned the crypto asset for fewer than 155 days, which in turn implies restored confidence among these investors.
According to the market expert, the price of Bitcoin has recently recovered to the Short-Term Holders (STH) Realized Price. He noted that this is encouraging because, when Bitcoin reverts to its typical cost base, short-term holders frequently increase their holdings, establishing a support level.
It is worth noting that Bitcoin has made two recoveries of the short-term holder’s realized price since 2023, triggering at least 30% in gains each time. Thus with the development reoccurring once again, the digital asset could be poised for another 30% rise or even higher, fueled by this bull cycle.
The research read:
Recently, the Bitcoin price has reclaimed the STH Realized Price. This is a positive sign because short-term holders often add to their positions when Bitcoin returns to their average cost basis, creating a support level. Since 2023, Bitcoin has reclaimed the short-term holder Realized Price twice, each time resulting in at least 30% profits.
The flagship asset has managed to recover above the average cost basis for short-term holders in light of a notable decrease in optimistic sentiment around BTC as recently cited by Santiment, a leading on-chain intelligence platform on Thursday. Santiment highlighted that the positive comments about BTC have sharply declined despite this week’s moderate rebound in the cryptocurrency market.
Data from the platform revealed that many traders are opening short positions, especially on Binance, the world’s largest cryptocurrency exchange, with the anticipation that BTC will undergo another price decline. However, given that both factors raise the possibility of a rise in any crypto asset, BTC could be set for a price increase in the upcoming days.
$100,000 Per BTC Possibility Increases
Even though positive sentiment has reduced toward Bitcoin, the likelihood of the digital asset reaching the $100,000 mark has experienced a noticeable rise. According to Kalshi, an American-based legal exchange, BTC’s chance of achieving the pivotal level now stands at 22%. Data from the platform also revealed an 8% chance of the asset hitting the $150,000 price level and a 57% possibility of reaching the $80,000 threshold.
Kalchi bases its predictions directly on traders who wager on the price of BTC in the future. Furthermore, the exchange believes the prediction could manifest as BTC continues to rise with the odds of Donald Trump winning the upcoming GOP Presidential election in November this year.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.