Here’s Where The Nearest On-Chain Support Is
Bitcoin has plummeted over the past day. This is the most recent on-chain level that the asset will eventually retest if the retracement is prolonged.
Actual price for 1 week to 1 month Bitcoin holders is $97,900
As CryptoQuant author Axel Adler Jr points out in a new article postal On X, the 1-week to 1-month realized price for BTC investors is currently the closest support for the asset.
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this”realized priceSimply put, what this refers to is an on-chain metric that tracks the cost basis or acquisition price of the average holder on the Bitcoin network.
When the value of this indicator is lower than the spot price of a cryptocurrency, it means that investors as a group can be considered to be holding on to a net profit. On the other hand, its lower value than the BTC value indicates the dominance of losses in the market.
In the context of the current theme, only the actual prices of a specific part of the industry are of interest: 1 week to 1 month holders. The queue includes addresses that have held tokens for at least a week and at most a month.
Now, below is a chart shared by analysts showing how the actual price of this Bitcoin group has changed over the past year:
As shown in the chart above, 1-week to 1-month real Bitcoin investors are seeing rising prices as the price rises. This is naturally because the group’s cost basis has been repriced to higher levels as new investors bought at the rally highs.
Currently, the indicator is worth $97,900, so these investors would make a profit at current prices. However, earlier in the past day, the asset came dangerously close to retesting this level as price surged. brief decline Under $99,000.
Investors who are 1 week to 1 month old form part of a larger group called Short Term Holders (STH). STH is broadly defined as holders who purchased its token within the past 155 days.
Statistically, the longer an investor holds a token, the less likely they are to sell it. Therefore, STH, especially the 1 week to 1 month tranche, will contain the least determined holders in the sector due to the shorter holding times.
Due to their fickle nature, STH usually exhibits some kind of reaction whenever Bitcoin price retests its average cost base. This reaction may come in the form of buying when retested from above, as these holders may believe that the dip is just a “down”.
Therefore, the actual price of STH on a 1-week to 1-month basis is lower than the current price and can be considered a support level for the cryptocurrency. That level has also helped the asset out of trouble this month.
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Bitcoin has recovered from the plunge so far, but if bearish momentum returns, a retest of this line may be worth watching given past patterns.
bitcoin price
As of this writing, Bitcoin is trading around $102,200, down nearly 3% in the past 24 hours.
Featured images from Dall-E, CryptoQuant.com, charts from TradingView.com
