Bitcoin (BTC) Market May Not Be Over as Price Floats 7% Above Short-Term Holders Cost Basis

Bitcoin’s all-time high might still be cooking as key metric hints at more BTC price rallies.

Bitcoin’s [BTC] bull market might not be over just yet, according to the latest on-chain observation. This observation is based on the movement of the BTC price in relation to the short-term holders (STH) cost basis.

The STH cost-basis metric tracks the average price at which short-term holders (investors who have held Bitcoin for less than 155 days) purchased their coins. It represents a psychological level for BTC investors and could serve as a technical point for analyzing prices, especially during bull cycles.

Typically, the price of Bitcoin floats above the STH cost basis during bull markets, indicating significant buying interest and positive sentiment from short-term traders.

Conversely, when the BTC price falls beneath this level — as often seen in bear markets, this means that newer investors are in the red, leading to substantial selling pressure.

Is Bitcoin’s price still above the STH cost basis?

According to data from Glassnode, Bitcoin’s price is roughly 7% above the STH cost basis, which currently stands at around $88,135.

While the premier cryptocurrency is a little closer to the cost basis, the inkling is still that short-term holders are less likely to offload their assets.

If the price of Bitcoin manages to sustain above the STH cost basis, it means the potential continuation of the current bull market. On the flip side, a move beneath $88,000 could set the stage for a trend reversal, with the market shifting from a bull to a bear phase.

At press time, the price of BTC sits just above the $94,000 mark, reflecting barely a 1% increase in the past 24 hours. According to data from CoinGecko, the flagship cryptocurrency is down by more than 3% in the last seven days.