{"id":348864,"date":"2023-08-09T19:45:00","date_gmt":"2023-08-09T18:45:00","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=348864"},"modified":"2023-08-09T15:09:41","modified_gmt":"2023-08-09T14:09:41","slug":"short-term-holders-kept-bitcoins-price-stable-but-constrained","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/short-term-holders-kept-bitcoins-price-stable-but-constrained\/","title":{"rendered":"How short-term holders keep Bitcoin price stable but constrained"},"content":{"rendered":"<p class=\"p1\"><a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin<\/a> has maintained a tight trading range between $28,000 and $30,000 since April 2023, a prolonged sideways movement that has been a rarity in the market. One of the reasons for this squeezed price range, especially after BTC <a href=\"https:\/\/cryptoslate.com\/bitcoin-sees-50m-in-realized-losses-as-it-dips-below-30k\/\">dropped<\/a> below $30,000, is price support created by short-term holders.<\/p>\n<p class=\"p1\">Short-term holders are entities that have held Bitcoin for a relatively brief period, typically less than 155 days. Their behavior is crucial in analyzing Bitcoin\u2019s performance as they often react more quickly to market changes, thereby influencing price movements.<\/p>\n<p class=\"p3\">Data from Glassnode showed that Bitcoin's price has traded above the realized price for short-term holders since June 19. The realized price is a metric that calculates the average price at which all Bitcoins were last transacted. It represents the average cost of Bitcoin for all users at any point in time, providing a sense of the market's cost basis.<\/p>\n<p class=\"p3\">As of Aug. 8, the on-chain cost basis for short-term holders is $28,462. This means that all of the addresses on the Bitcoin network that have acquired their coins in the past 155 days have bought them at an average price of $28,462.<\/p>\n<figure id=\"attachment_348873\" aria-describedby=\"caption-attachment-348873\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-348873\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/sth-realized-price-1mo.png\" alt=\"short-term holder realized price \" width=\"1800\" height=\"1013\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/sth-realized-price-1mo.png 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/sth-realized-price-1mo-300x169.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/sth-realized-price-1mo-1024x576.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/sth-realized-price-1mo-768x432.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/sth-realized-price-1mo-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-348873\" class=\"wp-caption-text\">Graph showing Bitcoin's spot price and STH realized price from July 11 to Aug. 9 (Source: <a href=\"https:\/\/studio.glassnode.com\/workbench?s=1688994647&u=1691586647&zoom=30\">Glassnode<\/a>)<\/figcaption><\/figure>\n<p class=\"p3\">Since the beginning of the year, Bitcoin's price traded below the short-term holder realized price only twice \u2014 from Jan. 1 to Jan. 11 and from June 9 to June 19. These brief dips below the realized price underscore the resilience of Bitcoin's support level.<\/p>\n<figure id=\"attachment_348872\" aria-describedby=\"caption-attachment-348872\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-348872 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/sth-realized-price-ytd.png\" alt=\"short-term holder realized price ytd\" width=\"1800\" height=\"1013\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/sth-realized-price-ytd.png 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/sth-realized-price-ytd-300x169.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/sth-realized-price-ytd-1024x576.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/sth-realized-price-ytd-768x432.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/sth-realized-price-ytd-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-348872\" class=\"wp-caption-text\">Graph comparing Bitcoin's spot price to STH realized price YTD (Source: <a href=\"https:\/\/studio.glassnode.com\/workbench?s=1672527600&u=1691586368&zoom=ytd\">Glassnode<\/a>)<\/figcaption><\/figure>\n<p class=\"p3\">The heightened sell pressure from short-term holders, evident from their increased activity on exchanges, is also a potential contributing factor to Bitcoin's sustained sideways movement. There has been a notable increase in the volume of BTC short-term holders in profit who have sent their holdings to exchanges in August.<\/p>\n<figure id=\"attachment_348874\" aria-describedby=\"caption-attachment-348874\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-348874\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/sth-exchange-transfers.png\" alt=\"short term holders in profit to exchanges\" width=\"1800\" height=\"1013\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/sth-exchange-transfers.png 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/sth-exchange-transfers-300x169.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/sth-exchange-transfers-1024x576.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/sth-exchange-transfers-768x432.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/sth-exchange-transfers-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-348874\" class=\"wp-caption-text\">Graph showing the volume of BTC short-term holders in profit have sent to exchanges from July 11 to Aug. 9 (Source: <a href=\"https:\/\/studio.glassnode.com\/workbench\/compare?s=1688994928&u=1691586928&zoom=30\">Glassnode<\/a>)<\/figcaption><\/figure>\n<p class=\"p3\">An increase in Bitcoin transfers to exchanges indicates a readiness to sell, which can create a supply glut, keeping the price from moving upward.<\/p>\n<p class=\"p3\">The behavior of short-term holders has created a solid support level for Bitcoin's price, but it also contributes to the current sideways movement. The balance between buying at an average price and the readiness to sell has created a unique market condition where Bitcoin's price has been stable yet constrained.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin has maintained a tight trading range between $28,000 and $30,000 since April 2023, a prolonged sideways movement that has been a rarity in the market. One of the reasons for this squeezed price range, especially after BTC dropped below $30,000, is price support created by short-term holders. Short-term holders are entities that have held [&hellip;]<\/p>\n","protected":false},"author":759,"featured_media":348876,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77921],"tags":[78767,78613,78751],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How short-term holders keep Bitcoin price stable but constrained<\/title>\n<meta name=\"description\" content=\"The on-chain cost basis for short-term holders created support at $28,420 and kept Bitcoin&#039;s price stable but constrained.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/short-term-holders-kept-bitcoins-price-stable-but-constrained\/\" \/>\n<meta property=\"og:locale\" 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