Analysis firm Glassnode, Bitcoin $93,857.8He stated that (BTC) is approaching a critical turning point that signals the end of previous bullish periods. The firm stated that Bitcoin’s cost basis for short-term investors is carefully monitored.
Cost Basis for Short-Term Investors
In its statement on social media platform X, Glassnode stated that short-term investors (STH) focus on the cost basis. STH cost basis is a metric that tracks the average purchase price of investors who have held their BTC for less than 155 days.
“Bitcoin’s Short-Term Investor Cost Basis model is critical to gauging sentiment among new investors. Historically, this pattern has identified market bottoms in bullish cycles and distinguished between bullish and bearish markets.” – Glassnode
Market Impact of Price Drop
According to Glassnode data, Bitcoin’s price is currently approximately 7% above its STH cost basis. If the price stabilizes below this level, it could be a sign of declining sentiment among new investors, which could mark a changing point in market trends.
The Situation of Long-Term Investors
Although long-term investors (LTH) are rapidly disposing of their Bitcoins, it is stated that this does not indicate the end of the bond market. Glassnode stated that the distribution rate of LTHs continued to rise in prices during times when distribution peaked in past cycles.
“Bitcoin Long Term Traders (LTH) are still in profit. In the past, when LTHs suffered sustained losses, this often marked the true end of a cycle. That is not the case right now.” – Glassnode
Market Overview
Glassnode concluded its analysis by stating that almost all long-term investors of Bitcoin are in a position to profit. This shows that the market is not yet in the recession phase.
As a result, Bitcoin’s current market situation continues to be evaluated on the cost basis of short-term investors and the distribution rates of long-term investors. By monitoring these indicators closely, investors can be prepared for possible changes in market trends.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
