Bitcoin is experiencing a crucial moment as it hits a significant bull market trendline. This trendline last led to a 30% gain in BTC price, and analysts are hopeful it will spark similar results this time.
BTC Price Upside Sends Short-Term Holders into the Black
Data from on-chain analytics platform CryptoQuant indicates that Bitcoin’s (BTC) price action is retesting the short-term holder (STH) realized price. This level is a key point of reference during bull markets, as it often forms long-term price support for speculatory holders who have held BTC for 155 days or less.
Since the bull market began in early 2023, BTC/USD has reportedly only briefly dipped below the STH realized price. This current dip appears to be ending, with STH entities no longer holding BTC at a loss.
“Recently, the Bitcoin price has reclaimed the STH Realized Price,” wrote CryptoQuant contributor J. A. Maartunn in a Quicktake blog post on July 18. “This is a positive sign because short-term holders often add to their positions when Bitcoin returns to their average cost basis, creating a support level.”
Bull Market Indicators and Potential BTC Price Upside
Maartunn further noted that since 2023, Bitcoin has reclaimed the short-term holder realized price twice, each time resulting in at least 30% profits. The exact level of the STH realized price varies, with CryptoQuant’s estimate being slightly lower than others. Glassnode, another on-chain analytics firm, reported that the STH realized price was around $64,300 at the time of writing.
“Across the last 30 days, the Short-Term Holder (STH) cohort experienced a dramatic decline in profitability, with more than 66% of their supply moving into an unrealized loss,” Glassnode wrote in its weekly newsletter, The Week Onchain, published on July 16. “This is one of the largest declines in STH profitability on record. This suggests that a significant number of ‘top buyers’ have seen their portfolio profitability challenged in recent weeks.”
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Market observers have analysed that the area around $65,000 remains a key target for bulls to flip to support next. Among those seeing good odds of upside continuation is well-known trader and former fund manager, Aksel Kibar. “This is the fifth month $BTCUSD is not backing off from the strong resistance around $65K,” he told followers on X (formerly Twitter) on the day. “I see this as very bullish long-term. Sticking to a resistance and no intention of selling off is usually a sign of a pending breakout.”
Bitcoin Faces Battle for Key Bull Market Trendline
Bitcoin faces a battle for a key bull market trendline, which it lost for the first time in nearly a year in June. Data from on-chain analytics platform CryptoQuant shows Bitcoin’s (BTC) price action, retesting the short-term holder’s (STH) realized price, which is a crucial level during bull markets.
News sources have observed the same trend since the latest bull market began in early 2023. BTC/USD only briefly dipped below the STH realized price. Now, another dip is coming to an end, with STH entities, defined as those holding a given amount of BTC for 155 days or less, no longer doing so at a loss.
“This is a positive sign because short-term holders often add to their positions when Bitcoin returns to their average cost basis, creating a support level,” wrote CryptoQuant contributor J. A. Maartunn. Despite the positive outlook, market volatility remains a concern. Some traders have reportedly expressed caution over the low trading volumes, which can impact the stability of the price movement. The area around $65,000 remains a critical target for bulls to secure as support to maintain the upward momentum.
BTC Price Upside Potential: A Closer Look at Technical Indicators
BTC price upside action, hitting the bull market trendline, brings hope for significant upside potential. As BTC reclaims the short-term holder realized price, the market is closely watching for signs of sustained gains. With the current technical indicators and positive sentiment among analysts, Bitcoin could see another period of significant price appreciation, similar to previous instances.
However, market participants must remain vigilant and consider the inherent volatility of the cryptocurrency market. The coming weeks will be crucial in determining whether Bitcoin can maintain its upward trajectory or face another period of consolidation, keep following The BIT Journal to get latest updates.
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
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