Bitcoin’s price is stuck between $80,000 and $85,000, leaving investors unsure if this is a buying opportunity or the market peak. While nobody has a crystal ball, on-chain data offers some clues.
The $90,950 Threshold
Crypto analyst Maartunn suggests it might be risky to jump back into Bitcoin at the current price. Their analysis focuses on how Bitcoin’s price relates to the average cost basis of short-term holders (STHs).
STHs are investors who’ve owned Bitcoin for less than 155 days. Their average cost basis shows the average price they paid for their coins. This acts as a key psychological level, especially during bull markets.
Typically, Bitcoin trades above the STH average cost basis during bull runs, showing strong buying pressure and investor confidence. However, when the price falls below this level (as it is now), it means STHs are losing money, potentially leading to more selling and downward pressure.
Currently, Bitcoin is about 6% below the STH average cost basis of $90,950. This suggests further selling pressure as STHs try to cut their losses. Maartunn advises waiting until Bitcoin surpasses this $90,950 level before buying.
A Twist: STHs Are Still Buying
Interestingly, short-term holders haven’t given up completely. Analyst Ali Martinez points out that STHs have bought over 35,000 BTC in the last four days.
Bitcoin’s Current Price
At the time of writing, Bitcoin is trading slightly below $86,000, up over 2% in the last 24 hours.
