Briefing
The market is currently resting on the Short-Term Holder Cost Basis, a critical on-chain metric that measures the average acquisition price of all coins bought in the last five months. This suggests that the conviction of the most recent investors is the single point of failure for the current rally. If the price holds above this floor, the bullish momentum is confirmed, and the path to new highs is clear.
A breach, however, would trigger panic-selling and a deep correction. The single most important data point is the Short-Term Holder Cost Basis, which sits at $93,145.
Context
The common question is whether the recent rally has enough structural support to continue toward new all-time highs, or if it is just a short-lived spike that will collapse under profit-taking. Investors are wondering if the recent buyers are committed to their positions or if they will panic-sell at the first sign of trouble. The market seeks a definitive signal to confirm the health and sustainability of the current uptrend.
Analysis
The Short-Term Holder Cost Basis (STH Cost Basis) tracks the aggregate price paid by all investors who have held Bitcoin for less than 155 days. This group is typically the most reactive and speculative. The indicator measures the average acquisition price of this cohort. When the price is above this cost basis, the average short-term investor is in profit, which encourages holding and further buying.
When the price falls below it, this entire cohort moves into an unrealized loss state, historically triggering panic-selling and a deeper market correction. The current data shows the price is hovering just above the $93,145 level. This means the entire recent cohort is still profitable, but their conviction is being tested at the absolute limit of their average cost, making this level the most critical structural support for the bull market.
Parameters
- Key Metric – STH Cost Basis ∞ $93,145 (The average price paid by all Bitcoin holders who acquired their coins in the last 155 days.)
- Bullish Target ∞ $131,800 (The projected price target if the STH Cost Basis holds as support.)
- Correction Target ∞ $71,150 (The next major structural support level if the STH Cost Basis is breached.)
Outlook
This insight suggests the market is at a decisive pivot point, where the momentum of the entire recent uptrend will be either confirmed or invalidated. A successful defense of the $93,145 floor will clear the path for a strong continuation toward the $131,800 target. The confirming signal to watch for next is a clear, high-volume break and sustained hold above the $100,000 psychological resistance level. Conversely, a sustained daily close below the STH Cost Basis would confirm the structural weakness and signal the start of a deep, multi-month consolidation toward the correction target.
Verdict
The Short-Term Holder Cost Basis is the definitive line in the sand separating a confirmed bull market continuation from a major structural correction.
