Following its record high of $108,135, Bitcoin has shown some stability, struggling to maintain a six-figure value. Despite briefly surpassing $100,000, the cryptocurrency quickly dropped to under $92,000 in recent days.
This stagnant price trend has sparked debates about whether the Bitcoin bull market has peaked. Yet, new on-chain data suggests that there is still potential for further upward momentum.
What is the Current Bitcoin Short-Term Holders Cost Basis?
In a recent report on the X platform, blockchain analytics company Glassnode has indicated that the Bitcoin bull run may not be over. This observation is based on how the BTC price aligns with the short-term holders’ (STH) cost basis.
The STH cost basis measures the average purchase price of short-term holders (individuals who have owned Bitcoin for less than 155 days). It provides insight into investor sentiment and acts as a key indicator during bull markets.
Typically, Bitcoin’s price remains above the STH cost basis during bullish periods, signaling strong buying interest and positive sentiment from short-term traders. Conversely, when the price falls below this level, as is common in bear markets, it suggests newer investors are at a loss, resulting in significant selling pressure.
According to Glassnode data, Bitcoin is currently around 7% above the STH cost basis, which is approximately $88,135. While the cryptocurrency is close to this level, it implies that short-term holders are less likely to sell their holdings.
A sustained price above the STH cost basis could indicate a continuation of the bull market. Conversely, a drop below $88,000 may signal a shift from a bullish to a bearish phase.
At present, the BTC price hovers just above $94,000, showing a minimal increase in the last 24 hours. CoinGecko data reveals a slight decline of over 3% in the past week.
Is a Market Rebound on the Horizon?
The crypto market has experienced a rough week, with many major assets seeing double-digit declines. This has led to numerous traders considering selling their assets on social media platforms.
However, this shift in sentiment could actually pave the way for a market recovery, as prices often move counter to popular opinion. On-chain analytics firm Santiment highlighted in a recent X post that a similar trend occurred in the last quarter of 2024, where increased bearish sentiments preceded a rally in prices.
