- BTCs The realized price for the short-term holder climbed above the price for the first time since June.
- Due to the price drop over the past 24 hours, long liquidations were greater than short ones.
Bitcoins [BTC] Short-Term Holder Realized Price (STH RP) rose above the coin’s price for the first time since June during the intraday trading session on October 2, as the leading coin broke the key resistance at $27,800 to exchange hands at $28,500, data by CryptoQuant showed.
Source: CryptoQuant
Read Bitcoin’s [BTC] Price forecast 2023-2024
BTC’s STH-RP tracks the average price at which all short-term holders purchased their coins. Short-term holders are investors who have held their BTC for less than 155 days.
The metric proves useful in tracking the sentiment of this cohort of BTC investors. When the STH realized price is above the current price of the BTC, it is considered a bullish signal as it suggests that short-term holders are making profits.
Conversely, when the benchmark is positioned below the price of BTC, it indicates that short-term holders are incurring a loss.
Highlighting the importance of BTC’s current STH-RP setup, pseudonymous CryptoQuant analyst Onchained, in a newly published reportnoted:
“With Bitcoin at $28,500 USD, significantly surpassing the STH RP line previously at $27,900 USD, short-term holders are now in a profitable position, potentially leading to bullish sentiment and greater asset retention, contributing to market stability.”
Slight price correction, but sentiment remains positive
After BTC’s brief stint above $28,000, the price retreated to exchange hands at $27,605 at the time of writing, data from CoinMarketCap showed. Within the last 24 hours, the value of the coin has fallen by almost 2%.
Nevertheless, the weighted sentiment on the general market remained positive, according to the figures Santiment showed. At 1,262% at the time of writing, investors remained unfazed by the slight correction in BTC’s value.
Source: Santiment
This was evidenced by the continued accumulation among the currency’s spot traders on a 12-hour chart. At the time of writing, the coin’s Relative Strength Index (RSI) stood at 59.74, while the Money Flow Index (MFI) stood at 54.27.
Moreover, at the time of writing, the price of BTC was trading close to the upper band of its Bollinger Bands (BB) indicator. When the price of an asset moves in this way, it indicates that the asset is trading at a high price relative to its recent trading range.
While this often indicates that a price correction is imminent, the price of BTC could stabilize at this current range if positive sentiment continues.
Source: BTC/USDT on TradingView
How much are 1,10,100 BTCs worth today?
Long traders are counting their losses
When the price of BTC began to rise on October 2, several long trading positions were opened as traders in the coin’s futures market bet more on upward price growth.
However, the decline over the past 24 hours has resulted in a dramatic increase in the number of long-term liquidations.
According to data from Mint glassLong positions accounted for 69% of all liquidated positions recorded in the last 24 hours.
Source: Coinglass