Bitcoin (BTC) surged past the $62,000 mark on September 19, surpassing its short-term holder (STH) realized price and indicating the potential for further gains, according to onchain data.
The STH realized price is a metric that calculates the average price at which short-term investors, who have held their coins for less than 155 days, purchased their Bitcoin. It serves as a support level during uptrends because these investors are more likely to buy if the price surpasses their entry point.
Avocado_onchain, a CryptoQuant analyst, explains that the STH realized price has consistently acted as a critical support and resistance level for Bitcoin.
Over the past six months, Bitcoin has struggled to stay above this level, which is currently at $61,953.
Data from market intelligence firm CryptoQuant shows that Bitcoin’s price was hovering around $63,855 at the time of publication, 1.4% above the STH realized price.
Ercan Sak, a popular analyst, stated that if Bitcoin closes above this level on a daily basis, the market will continue to be positive.
Coiner-Yadox, a pseudonymous crypto analyst, added that the bull market will resume once BTC surpasses the STH realized price.
Data from Cointelegraph Markets Pro and TradingView revealed that BTC was trading at $63,576 and had strong support compared to the resistance it faced during its recovery.
This was further confirmed by data from IntoTheBlock, which showed that the immediate support provided by the STH cost basis of around $62,000 was within the price range of $61,625 and $63,510. This is where more than 421,820 BTC were previously bought by over 2.45 million addresses.
Any attempts to push the price lower may be met with aggressive buying from these investors who want to increase their profits.
Additional data from CryptoQuant indicates a spike in the Taker Buy Sell Ratio on centralized exchanges (CEXs).
The Taker Buy Sell Ratio is a key metric used by traders to assess market sentiment and potential price movements. A ratio above one suggests that more takers are buying than selling, indicating bullish sentiment, while a ratio below one suggests the opposite.
The chart shows that this ratio increased from 0.93 on September 14 to 1.052 on September 16, indicating strong buy-side pressure on the CEXs.
Overall, the spike in the Taker Buy Sell Ratio suggests that a significant number of investors are currently buying Bitcoin in anticipation of further price increases.
This indicates a surge in aggressive buying, which could be a sign of more bullish momentum in the short term.
Please note that this article does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before making a decision.