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Bitcoin has observed a decline over the past day. This is the closest on-chain level that the asset would end up retesting if the drawdown continues.
Bitcoin holders from 1 week to 1 month have their price realized at $97,900
As CryptoQuant author Axel Adler Jr noted in a new mail at X, BTC investors’ 1 week to 1 month realized price is the closest support for the asset at the moment.
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“Realized Price” here refers to an on-chain indicator that, in short, tracks the cost basis or acquisition price of the average holder on the Bitcoin network.
When the value of the metric is lower than the spot price of the cryptocurrency, it means that investors as a whole can be considered to have a net amount of profit. On the other hand, being below the value of BTC suggests the dominance of losses in the market.
In the context of the current topic, the Realized Price of only one particular segment of the sector is of interest: 1 week to 1 month holders. This cohort includes addresses that have held their coins for at least a week and at most a month.
Now, here is the chart shared by the analyst showing how the realized price of this group of Bitcoin has changed over the past year:
As shown in the chart above, Bitcoin investors’ realized price from 1 week to 1 month has been rising along with the price rally. Naturally, this is due to the fact that the cohort’s cost base has revalued to higher levels as new investors have been buying at the highs of the rally.
Currently, the value of the indicator stands at $97,900, so these investors would make profits at the current price. However, the previous day, however, the asset came dangerously close to retesting the level as its price saw a brief drop below $99,000.
1-week to 1-month investors make up a section of a larger cohort known as short-term holders (STH). STHs are broadly defined as holders who purchased their coins in the last 155 days.
Statistically, the longer an investor holds their coins, the less likely they are to sell them. Therefore, STHs, and especially the 1 week to 1 month segment, would contain the holders with the lowest resolution in the sector, due to their low holding time.
Because of how fickle they are, STHs typically show some sort of reaction whenever Bitcoin price retests its average cost basis. This reaction may come in the form of buying when the retest comes from above, as these holders might believe that the decline is just a “dip.”
As such, the realized price of 1-week to 1-month STH, which is below the current price, could be considered as a support level for the cryptocurrency. The level also helped the asset once this month.
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So far, Bitcoin has been recovering from the drop, but if the bearish momentum returns, one may have to watch out for the retest of the line, considering the past pattern.
BTC Price
At the time of writing, Bitcoin is trading at around $102,200, down almost 3% in the last 24 hours.
Dall-E Featured Image, CryptoQuant.com, TradingView.com Chart
