According to on-chain data, Bitcoin (BTC) broke through $62,000 on September 19, rising above the price realized by short-term holders (STH) and showing potential for further upside.
The STH Realized Price is an indicator that calculates the average price at which short-term investors (investors who have held the coin for less than 155 days) have purchased Bitcoin. It acts as support in an uptrend, as these holders are more likely to buy when the price rises above the entry point.
CryptoQuant analyst Avocado_onchain explained that the STH realized price “continues to act as a significant support and resistance level for Bitcoin.”
“The average purchase price of these 1-3 month short-term holders is a key on-chain indicator to monitor as it can determine the future direction of the Bitcoin price.”
Over the past six months, Bitcoin has struggled to maintain above this level, with the current price sitting at $61,953.
According to data from market intelligence firm CryptoQuant, at the time of publication, the Bitcoin price was around $63,855, 1.4% higher than the STH realized price.
Bitcoin STH Realized Price. Source: CryptoQuant
Popular analyst Erkan Sak said, “If Bitcoin closes its daily price above this level, the market will remain positive.”
Coiner-Yardox, an anonymous cryptocurrency analyst, added that “the bull market will resume once BTC rises above the STH realized price again.”
According to data from Cointelegraph Markets Pro and TradingView, BTC is trading at $63,576, which is relatively strong support compared to the resistance it faced on its recovery path.
This is supported by data from IntoTheBlock, where the In/Out of the Money Around Price (IOMAP) model shows that immediate support provided by the STH cost base of around $62,000 lies within the price range of $61,625 and $63,510, where approximately 421,820 BTC were previously bought by over 2.45 million addresses.
Bitcoin IOMAP chart. Source: IntoTheBlock
Any attempt to lower the price may be met with aggressive buying by investors looking to increase their profits.
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Additional data from CryptoQuant shows that buy/sell ratios have surged across centralized exchanges (CEXs).
The Taker Buy Sell Ratio is a key indicator used by traders to gauge market sentiment and potential price movements. A ratio greater than 1 indicates bullish sentiment, suggesting that buyers outnumber sellers, while a ratio less than 1 indicates the opposite.
The chart below shows that the ratio surged from 0.93 on September 14 to 1.052 on September 16, indicating very strong buying pressure on CEX.
Bitcoin Taker Buy Sell Ratio. Source: CryptoQuant
Typically, a surge in the taker buy-sell ratio suggests that a significant number of investors are buying Bitcoin in anticipation of further price increases.
This indicates that aggressive buying is picking up and is a sign that more bullish momentum could be building in the short term.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.