Bitcoin (BTC) Short-Term Holder Realized Price No Longer Growing Too Fast

In a new post on X, analyst James Van Straten has talked about the 7-day rate of change in the Realized Price of the Bitcoin short-term holders.

An analyst has highlighted how an important Bitcoin indicator has returned to levels that could be considered healthy for a bull-market uptrend.

Bitcoin Short-Term Holder Realized Price No Longer Growing Too Fast

In a new post on X, analyst James Van Straten discussed the 7-day rate of change in the Realized Price of Bitcoin short-term holders. The “Realized Price” in this context refers to an on-chain metric that tracks the cost basis of the average investor or address on the network.

When the indicator’s value is higher than the spot price of the crypto, it means the holders as a whole can be assumed to be in a state of net profit. On the other hand, it being below the mark implies the overall market is holding loss.

In the context of the current topic, only the Realized Price of a particular market segment is of interest: the short-term holders (STHs). This cohort includes the investors who bought their coins within the past 155 days.

The STHs form one of the two main divisions of the BTC sector on the basis of holding time, with the other group being known as the long-term holders (LTHs).

Statistically, the longer an investor continues to hold onto their coins, the less likely they become to sell at any point, so the STHs are considered to include the weak hands of the market, while the LTHs represent the resolute HODLers.

Now, here is the chart shared by the analyst that shows the trend in the Realized Price of the STHs, as well as its 7-day rate of change, over the last few years:

As can be seen in the above graph, the Bitcoin STH Realized Price has gone up during the last few months as the rally in the coin’s price has occurred. The reason behind this trend is naturally the fact that the STHs represent the recent buyers, who have to purchase at increasingly higher prices during a bull run.

The crypto has been trading above the cost basis of this cohort for a while now, implying that its members have been enjoying profits. Historically, the line has served as a sort of boundary between macro bearish and bullish trends, so BTC continuing to trade above it is a positive sign.

As highlighted by Van Straten, another potential bullish sign is the fact that the 7-day rate of change in the indicator has seen a cooldown recently. Earlier, the Realized Price of the STHs was expanding at a notable rate, something that has generally led to tops for the coin.

With the indicator now growing at a more healthy rate, it’s possible that Bitcoin could continue its bull run in a sustainable manner.

BTC Price

At the time of writing, Bitcoin is valued at around $98,400, having declined by more than 6% during the last week.