Key Takeaways
- Bitcoin short-term holder supply is sensitive to price action, Glassnode’s analysis revealed.
- Bitcoin spot price has recently found strong support at the Adjusted Realized Price level of $25.5K.
- Glassnode’s insightful analysis provides valuable insights into the dynamics of Bitcoin’s short-term holders.
Glassnode examines the Unspent Realized Price Distribution for the STH cohort. Out of the total STH supply of 2.72 million BTC, approximately 74% (2.02 million BTC) of these coins are currently in a profitable position. This means that the acquisition price of these coins is lower than the current market price, reflecting gains for these holders.
Following rumors of Bitcoin price being influenced by super moon, this is a relatively new development. With an unspent realized priced distribution at 74%, things are taking a turn.
Conversely, about 26% (705,000 BTC) of the STH supply is underwater. This means that these coins were acquired at a higher price than the current market value.
Notably, Glassnode points out that around 21% (approximately 560,000 BTC) of the STH supply closely aligns with the spot price. This finding reveals that a significant portion of the short-term holder supply is highly sensitive to price action. Consequently, any significant movement in the Bitcoin price could have a substantial impact on this subset of STH holders, potentially influencing market dynamics.
Transitioning to the second tweet, Glassnode discusses the concept of the Adjusted Realised Price and its relevance in determining price support levels. Recently, the Bitcoin spot price has encountered robust support at the Adjusted Realised Price level of $25.5K. This price level holds particular significance as breaking below it in June 2022 marked the initiation of a deep bear market.
However, the recent break above this crucial level indicates a return to favourable price action, suggesting a positive trend in the market. The strong support observed at the Adjusted Realised Price of $25.5K serves as an encouraging sign for Bitcoin investors. It implies a potential stabilisation of the market and a bullish outlook for the future.
Glassnode’s insightful analysis provides valuable insights into the dynamics of Bitcoin’s short-term holders. These findings highlight the importance of monitoring key metrics and price levels to gauge market sentiment. It will help users make informed investment decisions in the ever-evolving cryptocurrency landscape.
Source
https://twitter.com/glassnode/status/1677281602789953542?s=20
https://twitter.com/glassnode/status/1677296418791276546?s=20
