On-chain data shows that short-term Bitcoin whales have a cost base of over $64,000, which could be a potential resistance point for Bitcoin.
Bitcoin Not Far From Price Target for Short-Term Coin Holders After Rally
As one analyst at CryptoQuant Quicktake pointed out, mailThe price of Bitcoin has fallen below the price realized by short-term whales earlier. “Realized price” here refers to an indicator that tracks the average cost basis currently shared by a given group of investors.
When the spot price of the asset is below this measure, the asset holders belonging to the group are in a net unrealized loss. Similarly, when the price is above the index, the group is in a profit.
In the context of the current topic, there are two interesting market segments: short-term Bitcoin whales and long-term Bitcoin whales. Short-term and long-term Bitcoin holders constitute the two main segments of the Bitcoin sector based on holding time.
Short-term holders (STHs) are investors who have purchased their cryptocurrencies within the past 155 days, while long-term holders (LTHs) include hands that have kept their cryptocurrencies idle for longer than this period.
“Whales” generally refer to entities holding at least 1,000 BTC in their wallets, so STH and LTH whales naturally correspond to the larger members of the respective groups.
Now, here is a chart showing the trend in the price achieved for these two sets of Bitcoin over the past few years:
As shown in the chart above, the spot price of Bitcoin dropped significantly below the price realized by STH whales during the recent market downturn. However, as the price has recovered, it is now approaching this level.
The average base price for STH whales is between $64,000 and $65,000, so a retest could be imminent. However, such a retest could be a tough one for the cryptocurrency.
Low-cap stocks represent the weakest hands in the market, and may be sensitive to market changes. Of course, the cost base is an important level for any investor, but this group in particular may be ready to react when such a new test occurs.
Since most STH whales have been in losses recently, some may be desperate for a retest so they can exit the market at breakeven. It remains to be seen whether Bitcoin will overcome this hurdle if the current recovery rally continues to this extent.
While STH whales are suffering losses, LTH whales continue to make high profits as their realized price is only $22,000, which means their patience has paid off.
Bitcoin price
Bitcoin briefly broke above $62,000 last day, but the price has since fallen back to $60,500.