Bitcoin Reclaims Short-Term Holder Cost Basis, Signaling Huge Bullish Momentum Despite Trading Around $110k

After a key on-chain signal flipped bullish, Bitcoin’s price is on a rising trend. Bitcoin has pushed back above the Short-Term Holder Realized Price, which is well-regarded by analysts who follow the crypto market.

Short-Term Holder Realized Price as an Inflection Point

Bitcoin is rallying after reclaiming the Short-Term Holder Average Cost basis — a key level that often serves as a strong buy-the-dip indicator during bull markets.

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Right now, Bitcoin’s realized price is around $90,000, and its market price is hovering at $110,000. This puts forward buyers’ beliefs once more, and it is commonly known to show the best times to purchase when markets are on a strong rise.

Why Realized Price Is Important

The Short-Term Holder (STH) Realized Price represents the average price at which recent buyers purchased their BTC. Trading above this mark shows that most people holding the asset are gaining value. As a result, less selling takes place, and investors tend to keep accumulating, mostly from people who trust the market.

In previous cycles, reaching this level again showed an important turning point, when a correction ended and the trend continued. Higher prices still encourage buyers to buy or hoard coins.

The STH MVRV is Pointing to More Bullish Momentum

The STH Market Value to Realized Value (MVRV) ratio is also holding steady at 1.03. The metric measures the difference between Bitcoin’s current price and the cost basis of those who recently bought it. These investors’ holdings bring a profit, yet the situation is not critical and isn’t pushing them to bring their positions down.

As the market’s MVRV has cooled and realized price is back, it appears that a bullish arrangement is building, which could mark the early stages of another rally.

Eyes on More Upside Potential for Bitcoin

Market analysts are carefully observing to see if Bitcoin can stay above this critical point and grow. History tells us that claiming the STH cost basis tends to make the market more bullish. Currently, on-chain readings are indicating a positive outlook for Bitcoin, suggesting that the bulls may once again be in control.