Bitcoin is experiencing a retest of a historically significant support level at $64,000 after a recent plunge. The short-term holder realized price, an on-chain indicator representing the acquisition cost for short-term investors, has been reached. This price, when above or below market value, indicates net unrealized loss or profit. Historically, retesting this level marks a transition between bearish and bullish periods.
Short-term holders (STHs), defined as those who bought Bitcoin within the past 155 days, react sensitively to shifts in the asset's price. The retest of their cost basis influences market behavior significantly. When the broader market is bullish, STHs see their cost basis as a buying signal, providing support. Conversely, bearish trends may trigger panic selling, setting resistance levels.
Recently, Bitcoin broke above the short-term holder realized price, a sign of bullish sentiment. However, the current market dip reintroduces uncertainty. If Bitcoin maintains support at this level, it suggests a continued bullish outlook. If it falls below, the market may experience a bearish shift. Bitcoin is currently trading at around $64,800, down 2% over the last 24 hours.
