Bitcoin (BTC) surged past $62,000 on September 19, surpassing the realized price for short-term holders (STH) and signaling the possibility of further upward momentum, based on on-chain analysis.
The STH realized price is a key metric that reflects the average cost at which short-term investors—those who have retained their Bitcoin for fewer than 155 days—acquired their assets. This price point often serves as a support level during upward trends, as these investors are inclined to buy more if the price exceeds their initial investment.
CryptoQuant analyst Avocado_onchain noted that the STH realized price “has consistently functioned as a pivotal support and resistance threshold” for Bitcoin. Over the last six months, Bitcoin has faced challenges in maintaining a position above this crucial level, which currently stands at $61,953.
As of the latest update from market intelligence firm CryptoQuant, Bitcoin’s price was around $63,855, sitting 1.4% above the STH realized price.
Bitcoin STH realized price. Source: CryptoQuant
Respected analyst Ercan Sak commented, “If Bitcoin can close daily above this threshold, the sentiment in the market will remain positive.” Pseudonymous crypto analyst Coiner-Yadox added that the “bull market resumes when BTC rises above the STH realized price.”
Data from Cointelegraph Markets Pro and TradingView indicated that BTC was trading at $63,576 and appeared to be supported robustly compared to the resistance it encountered on its rebound.
This was backed by information from IntoTheBlock, whose In/Out of the Money Around Price (IOMAP) model revealed that the immediate support linked to the STH cost basis, around $62,000, lies within the range of $61,625 to $63,510. Approximately 421,820 BTC were acquired by over 2.45 million addresses within this price range.
Bitcoin IOMAP chart. Source: IntoTheBlock
Any downward price attempts might trigger aggressive buying from this group of investors looking to enhance their profits.
Related: Bitcoin bulls aim for the $64K BTC price milestone as US stocks eye new records.
Further insights from CryptoQuant show a notable increase in the Taker Buy Sell Ratio across centralized exchanges (CEXs). This ratio is a critical metric utilized by traders to assess market sentiment and possible price fluctuations. A ratio above one indicates that more buyers are entering the market than sellers, reflecting bullish sentiment, whereas a ratio below one suggests the contrary.
The chart below illustrates that this ratio surged from 0.93 on September 14 to 1.052 on September 16, indicating a strong buy-side pressure on CEXs.
Bitcoin Taker Buy Sell Ratio. Source: CryptoQuant
Overall, the rise in the Taker Buy Sell Ratio implies that a considerable number of investors are presently acquiring Bitcoin in anticipation of further price appreciation. This trend points to an increase in aggressive buying—a potential indicator of bullish momentum in the near term.
This article does not offer investment advice or recommendations. All investment and trading activities carry risks, and readers should conduct their own research before making any decisions.