Market Analysis: Bitcoin’s Critical Support Level
Bitcoin’s price action has entered a critical phase as it oscillates between $80,000 and $85,000, with the Short-Term Holder (STH) cost basis emerging as a key metric to watch. The premier cryptocurrency’s recent retreat from $90,000 has sparked intense debate among investors about whether this represents a buying opportunity or signals a potential market top.
According to recent market analysis, the current price movement suggests heightened caution may be warranted before entering new positions.
Understanding the STH Cost Basis Metric
The Short-Term Holder cost basis, currently at $90,950, represents the average purchase price for investors who have held Bitcoin for less than 155 days. This metric serves as a crucial psychological level and technical indicator for market sentiment.
Key STH Metrics:
- Current STH Cost Basis: $90,950
- Price Deviation: -6% below basis
- Recent STH Accumulation: 35,000 BTC in 4 days
Market Implications and Trading Strategy
Crypto analyst Maartunn suggests investors should exercise patience until Bitcoin reclaims the STH cost basis level. This recommendation is based on historical patterns where prices trading below the STH basis often precede additional selling pressure.
Current Market Status
As of the latest data, Bitcoin trades near $86,000, showing a 2% recovery in the last 24 hours. However, the position below the STH cost basis suggests potential volatility ahead as short-term holders may seek to minimize losses.
Source: NewsBTC