Bitcoin (BTC) Price Is Not Far From Realized Price of Short-Term Holder Whales After Rally

On-chain data shows that the Bitcoin short-term holder whales have a cost base above $64,000, which could be a potential resistance point for BTC.

Bitcoin (BTC) price has observed a strong recovery rally over the past few weeks. The asset dropped down to the lower-$30,000 region during the recent market downturn, but now, it’s close to retesting the realized price of short-term holder whales.

Bitcoin Price Rally Could Face Resistance At Key Level

As an analyst highlighted in a recent CryptoQuant Quicktake analysis, BTC price slipped below the realized price of the short-term holder whales earlier this year.

The “realized price” is an indicator that follows the average cost basis that investors within a particular cohort currently hold. When the asset’s spot price is below this metric, it suggests that the holders belonging to the cohort are in a state of net unrealized loss.

In the context of the present discussion, there are two market segments of particular interest: the short-term holder and long-term holder whales.

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The short-term and long-term holders are the two primary divisions of the Bitcoin sector based on holding time. The short-term holders (STHs) are the investors who bought their coins within the past 155 days, while the long-term holders (LTHs) include the hands who have kept their coins dormant for longer than this period.

The “whales” generally refer to the entities that carry at least 1,000 BTC in their wallets, so the STH and LTH whales would naturally correspond to the large members of the respective cohorts.

The following chart shows the trend in the realized price for these two Bitcoin groups over the past few years:

Bitcoin price has observed a strong recovery rally recently, but it now nears the realized price of the STH whales.

Bitcoin Price Rally Could Face Resistance At Key Level Bitcoinist.com

As you can see from the above graph, Bitcoin price slipped significantly below the realized price of the STH whales during the recent market downturn.

However, as the price observed recovery, it has now neared back to that level. The average cost basis of the STH whales is between $64,000 and $65,000, so a retest of it could be coming soon.

Such a retest could prove difficult for the cryptocurrency. The STHs represent the weak hands of the market, which are sensitive to changes in the market.

The cost basis is naturally an important level for any investor, but this cohort especially can be likely to react when such a retest happens.

Since most STH whales have been at a loss recently, some may be eagerly awaiting a retest so they can exit the market at their break-even level. It remains to be seen whether Bitcoin will overcome this obstacle if the current recovery rally continues that far.

While the STH whales suffer losses, the LTH whales continue to be in high profits as their realized price is at just $22,000, implying that their patience has paid off.

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Bitcoin Price Analysis

At the time of writing, BTC’s price trades around $60,500 after observing a 1.5% price decrease during the past day. Over the past week though, the coin has observed gains of over 7%.

In the past month, Bitcoin has observed recovery from the lower-$30,000s to its current levels, marking gains of about 70%.

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