The recent surge in Bitcoin’s (BTC) price has been accompanied by a significant rise in the realized price of short-term holders (STHs), indicating a strong and sustained uptrend in the cryptocurrency market. This group of investors, primarily composed of those who purchased BTC before and after the approval of the U.S. spot Bitcoin ETF in January, has played a crucial role in driving the market’s recovery.
Increased Short-Term Speculation
According to data from market intelligence firm Glassnode, the realized price of short-term holders has been “steadily increasing, nearing $64,000.” This metric provides crucial support, with Bitcoin testing this level at the start of May. The STH realized price rose 1.5% in the past week, signaling increased short-term speculation and a bullish outlook for Bitcoin’s price.
Positive On-Chain Indicators
Additional data from CryptoQuant reveals a spike in the Taker Buy Sell Ratio on the HTX crypto exchange, a key metric used by traders to gauge market sentiment and potential price movements. An increase in this ratio above 1 suggests more takers are buying than selling, indicating a bullish sentiment.
Furthermore, independent trader Ali Martinez observed a surge in the number of daily active addresses on the Bitcoin network, breaking a downtrend that started on March 5. This surge in network activity is a positive sign that the BTC bull run will continue.
Bullish Outlook
As long as Bitcoin holds above $64,000 for the next few months, the long-term outlook for the Bitcoin price will remain bullish, as this level acts as a significant support zone. The IOMAP model from IntoTheBlock shows that the immediate support for the price around $69,000 is where approximately 1.3 million BTC were previously bought by more than 2.22 million addresses, indicating strong buying pressure in this area.
In summary, the rise in Bitcoin’s short-term holder realized price, coupled with positive on-chain indicators such as the Taker Buy Sell Ratio and the surge in daily active addresses, confirms the ongoing BTC rally and suggests a continued bullish outlook for the cryptocurrency market.
