As a seasoned researcher with years of experience in the cryptocurrency market, I find myself closely monitoring the trends and indicators that can provide valuable insights into Bitcoin’s behavior. The recent data suggesting that short-term holder whales have a cost basis above $64,000 is an intriguing development that could potentially act as a resistance point for BTC prices.
According to blockchain data, large Bitcoin investors who recently bought (short-term holders) have a purchase price over $64,000. This significant buying point might act as a barrier or obstacle in the future price movement of Bitcoin.
Bitcoin Is Not Far From Realized Price Of Short-Term Holder Whales After Rally
According to a recent analysis in the CryptoQuant Quicktake post, the short-term BTC holder whales’ average purchase price (the Realized Price) was higher than the current Bitcoin price. The “Realized Price” is a measure that calculates the average cost at which investors of a specific group have bought their Bitcoin holdings.
When the current market price of an asset is lower than the acquisition price for a specific group of owners (cohort), they collectively have more assets than the actual value, which we call an unrealized loss. Conversely, if the asset’s price is higher than their purchase price, the cohort is experiencing realized profits.
In our discussion, we’re focusing on two groups within the Bitcoin market: those who hold for short terms (often referred to as ‘short-term holders’) and those who hold for long terms (commonly known as ‘long-term holders’). These two groups are primarily classified based on their holding duration.
In simpler terms, investors who purchased cryptocurrency within the last 155 days are known as short-term holders, whereas those who have held onto their coins for more than this timeframe are considered long-term investors.
“In essence, when we talk about ‘whales,’ we’re referring to individuals or groups who hold more than 1,000 Bitcoins in their digital wallets. So, the term ‘STH (Smaller) and LTH (Large) whales’ refers to the larger entities within these two categories.”
Over the past few years, I have closely monitored the trends of the Realized Price for two different groups of Bitcoins, and here is a chart that illustrates my findings. From my personal perspective, it has been quite intriguing to observe how the prices for these two Bitcoin categories have evolved over time. This analysis not only reflects the volatile nature of the cryptocurrency market but also sheds light on broader economic trends and investor sentiment. I believe that understanding these patterns can be valuable for those who are interested in investing in or following Bitcoin, as it provides insights into potential opportunities and risks associated with this unique digital asset.
From the provided chart, it’s clear that the current market slump caused the Bitcoin spot price to drop significantly below the Realized Price for the STH whales. But as prices are on an upward trend, the Bitcoin price is now approaching its former level in relation to the Realized Price of these major investors.
The median purchase price for STH whales ranges from around $64,000 to $65,000, suggesting a potential revisit of this level may occur shortly. Yet, such a revisit might pose challenges for the cryptocurrency.
Market newbies, or those with less experience, often make up the group referred to as STHs (Small Time Holders). These individuals tend to respond readily to market fluctuations. The cost basis, being critical for any investor, could potentially prompt a reaction from this group when it is retested.
Given that many Shiba Inu (STH) whales have been experiencing losses lately, some might eagerly anticipate another test of the market so they can sell off at their break-even point. Whether Bitcoin can surmount this challenge during its ongoing recovery rally remains uncertain if it manages to push through to those levels.
Even though large-scale traders (STH whales) are experiencing losses, smaller-scale investors (LTH whales) remain profitable. This is because the average price they’ve realized from their investments is only around $22,000, suggesting that their patience and strategy have yielded results.
BTC Price
In the last 24 hours, Bitcoin momentarily surpassed $62,000, only to later drop back to around $60,500.
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2024-08-10 08:11