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- At press time, BTC was “stuck” between realized prices in the short term and in the longer term.
- To improve market sentiment, the price had to be above the short-term realized price.
The sentiment around Bitcoin [BTC] likely to improve once the price surpasses the realized price of short-term holders (LTHs), pseudonymous CryptoQuant analyst Signal quant in a new report.
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The realized price of BTC refers to the average price at which all Bitcoins have moved over their lifetime. When the realized price is above the market price, it means that market participants are making an average profit.
Conversely, coin holders are at a loss when the realized price is below the current price.
For short-term (STH) holders of BTC, their realized price refers to the average price at which coins purchased within the last six months were acquired. For long-term holders (LTH), this is the average price at which all coins that have not moved in the last six months were originally purchased.
Data retrieved from Glass junction showed that the realized price of BTC for its short-term holders on September 12 was $27,975.
According to SignalQuant, this price acted as a support level for the king coin in January before bearish sentiments swept the market and turned it into resistance.
Source: Glassnode
As for the long-term holders, their realized price was $22,400. At the press time price of $25,956, BTC exchanged hands between the two realized prices.
According to SignalQuant:
“The price of BTC needs to hold above the realized price of LTH and then break back above the realized price of STH for “short-term and long-term investor sentiment” to truly recover.”
This would signal to investors that the bear market is over and the BTC price is likely to continue rising.
Network activity continues to increase
Although the price of BTC continues to resist at $26,000, new demand continues to grow unabated. An on-chain assessment of the coin’s network activity showed a 5% increase in the daily number of new addresses created to trade the leading coin over the past week.
In fact, on September 9, 717,331 new addresses were added to the coin’s network, the highest daily number in the past five years. Moreover, Data from IntoTheBlock also showed an 11% increase in the number of daily active addresses over the same period.
Source: IntoTheBlock
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There has been a notable increase in the number of daily BTC transactions involving sharks and whales. According to IntoTheBlock, BTC transactions worth between $10,000 and $100,000 have increased 8% over the past 30 days.
Whale transactions worth between $100,000 and $1 million also rose 6% over the same period.
Source: IntoTheBlock