Bitcoin Reclaims Key On-Chain Levels, Boosting Bullish Momentum

Bitcoin has reclaimed two key on-chain levels: its 50-day moving average and the short-term holder cost basis. The latter is a crucial indicator that reflects the profitability of recent buyers, with data suggesting that they are now holding at a profit.

This combination often signals reduced fear-driven selling and opens the door for further gains. Historically, when Bitcoin breaks above this threshold, it has continued higher, providing traders and analysts with a useful reference point for gauging momentum.

The short-term holder cost basis is calculated by averaging the price at which coins were acquired by investors who have held Bitcoin for less than 155 days. When the market price sits above this level, recent buyers are more likely to hold onto their assets rather than panic sell.

While reclaiming these levels does not guarantee further price gains, it suggests that immediate selling pressure from recent buyers has eased. This dynamic can create a more stable price floor and allow bullish momentum to build.