Bitcoin has been showing signs of recovery towards the $28,000 level, and on-chain data suggests that a historical support line may have played a role in this. Glassnode, an on-chain analytics firm, reported that the BTC price approached the cost basis of short-term holders recently. The realized cap model for Bitcoin takes into account each investor’s acquisition cost to determine its value rather than just using current spot prices. When divided by the number of coins in circulation, it gives us an average value known as realized price.
This metric can also be defined for partial segments like Short-Term Holders (STHs), which tells us about their average cost basis only. STHs are investors who bought their coins less than 155 days ago while those outside this group are Long-Term Holders (LTHs). Glassnode marked various instances where Bitcoin STH realized price interacted with asset’s spot price over past years indicating resistance or support levels.
When the cryptocurrency’s bull run topped out back in November 2021, its value dropped below this indicator signaling change of trend followed by bear market taking over; however, when rally began earlier this year after breaking through resistance provided by STH cost basis leading to another change in wider trend turning it into support for asset – something not unusual during bullish periods historically observed helping prices rise higher before finding struggle near $26k level consolidation meant approaching retest decision point according to analysts at Glassnode yesterday describing successful outcome sign strength bullish trend failure implying weakness instead but rebounding briefly above $28k uplift coming right as nearing retest historical level naturally sustained move away from now confirming active positive sustainability rally.
At present writing time around tradingSponsored Product approximately up 4% last week featured image iStock.com charts TradingView.com Glassnode.com
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