Bitcoin Reclaims Short-Term Holder Cost Basis Amid August Rally
Bitcoin's recent price action has seen it reclaim its short-term holder cost basis, which is an on-chain metric that tracks the average cost basis of every coin that last moved within 155 days. This level has been a key area of resistance for Bitcoin, and its reclaim suggests that recent buyers are now sitting on unrealized profits.
The short-term holder realized price was $67,125, and Bitcoin has stayed above it since August 19. Data from Look Into Bitcoin highlights that this is the first convincing reclaim of that level since April last year. As a result, the line has become a support zone rather than a ceiling or resistance.
The reclaim of the short-term holder cost basis is an important development for Bitcoin's price action. Historically, reclaims of this level have clustered around turning points rather than mid-trend. The current situation suggests that the recent buyers who were selling relief rallies four weeks ago are now holding paper gains, which changes what happens on the next 5% down day.
The 50-week moving average has been a key area of resistance for Bitcoin, and its price touched it this week but closed around $2,300 below. The slope of the line is still falling, indicating that the relationship between the price and the moving average remains inverted.