Bitcoin Short-Term Holder Cost Basis Set at $111,400

Glassnode's recent analysis highlights the significance of Bitcoin's Short-Term Holder (STH) Cost Basis, currently at $111,400. This metric represents the average acquisition level for investors who bought BTC within the last 155 days.

The STH Cost Basis acts as a historical battleground between bullish and bearish sentiments.
If Bitcoin's price trades above this level, holders see unrealized profits; if below, the market is considered underwater.
The current spot price of Bitcoin is close to this cost basis, suggesting potential retesting if downward momentum persists.
Historically, this level has alternated between support and resistance.
STHs are reactive investors: they buy during perceived dips and sell at break-even points in bearish conditions.
A sustained drop below the STH Cost Basis may indicate a shift toward a longer-term bearish trend.

Currently, Bitcoin is trading near $112,800, with no substantial recovery after recent declines.