Bitcoin price resilience hinged on short-term holder cost basis, on-chain analysis shows

Quick Take

Bitcoin’s price dynamics are exhibiting a pattern of consistent reliance on the short-term holder cost basis as a support level, currently standing at $29.1k. For the third time this year, Bitcoin has gravitated towards this price level, indicating its significance in the market’s perception of Bitcoin’s value.

The Short-Term Holder Realized Price, representing the average on-chain acquisition cost of coins moved within the last 155 days and not held in exchange reserves, helps us understand this phenomenon. These coins are considered the most likely to be transacted on any given day, thereby influencing Bitcoin’s price movement.

Notably, this price level provided support during two critical periods earlier this year – the banking crisis in March and a notable dip in mid-June. This recurring pattern underscores the importance of the short-term holder cost basis as a determinant of Bitcoin’s price resilience.

Analyst

James Van Straten

Former Lead Analyst at CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century's paramount invention.

@jvs_btc LinkedIn Email James

Latest Insights

Bitcoin ETFs bring in over $6 billion in November after another $1 billion day

Data via Glassnode 2 days ago

Solana hits new $264 all-time high as DEX volume reaches $100 billion monthly milestone

2 days ago

US Bitcoin ETFs surpass $100 billion, pose challenge to largest Bitcoin holders

2 days ago

Latest Alpha Market Report

Available exclusively via

Polymarket: A revolution in prediction markets

Andjela Radmilac · 1 day ago

CryptoSlate's latest report dives deep into Polymarket's evolution, its pivotal role in high-stakes prediction events like US elections, and the implications of its controversies on its market position.