CandleFocus

Glassnode: Bitcoin Short Term Future Rests on Maintaining the STH Cost Basis

Author: Content Editor
Bitcoin is aiming to maintain its Short-Term Holder (STH) cost basis of $62.5K as it tries to stabilize after a 10% correction. This level is significant for gauging the short-term health of the market, and if Bitcoin falls below it, recent buyers could face pressure. While the 26% drop from its highs this year is notable, it is not considered catastrophic. The market is at a crossroads, and Short-Term Holders (STHs) are crucial in determining market action. These investors are currently in a profitable position, but there is an increasing incentive for them to lock in profits, which could lead to selling pressure. Two other figures that assess market health are the True Market Mean at $47K and the Active Investor Price at $52.5K, both of which Bitcoin has remained above throughout most of 2021. Speculative activity has decreased in the derivatives market, with the cost of leverage for long positions dropping significantly.

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