Bitcoin: Short-Term Holder Realized Price

What is This Chart Showing?

The Bitcoin Short Term Holder (STH) Realized Price is a metric that represents the average acquisition price of Bitcoin for investors who are considered short-term holders, typically defined by the movement of coins that have been held for less than 155 days.

Why Is This Chart Useful?

This measure reflects the cost basis of more recent market entrants, who are often more sensitive to price fluctuations and may demonstrate different behavior compared to long-term holders, such as a higher propensity to sell during periods of volatility or price declines.

The STH Realized Price can provide insights into the current sentiment and momentum within the Bitcoin market, highlighting potential resistance levels or points at which selling pressure might increase.

Historically, in Bitcoin bull markets, price broadly trends ABOVE the Short-Term Holder Realized Price. In bear markets price broadly trends BELOW the Short-Term Holder Realized Price.

This makes sense because in bull markets, short-term holders of bitcoin are holding onto profits as price rallies higher. Whereas in bear markets, they typically hold losses when price trends below their average purchase price.

Where Can I Learn More?

This chart is derivative of Realized Price which you can learn more about here.

You can see the Long-Term Holder Realized Price chart here.