Bitcoin (BTC) STHs Are In Red as the World\'s Most Valuable Coin Finds Itself at a Critical Juncture

Fast approaching $60,000, on-chain data points to weakness at spot rates.

Bitcoin price analysis shows weakness at spot rates.

Despite rallying over 100% over the last year, data shows that many short-term holders (STHs) are underwater.

STHs are entities or addresses that bought their coins in the last 155 days or before the end of 2023. During this time, not only did prices soar to an all-time high, meaning all coins were in circulation by mid-March 2024, but speculators were also expecting prices to continue rising.

However, this didn’t happen because as soon as BTC breached $70,000, rising to $73,800, prices fell sharply. By mid-May, BTC cratered to $56,800 before briefly bouncing to around $71,500.

The failure of bulls to break $72,000, a level closely monitored by traders, meant that sellers had the upper hand at press time.

Glassnode’s assessment suggests that although STHs are feeling the pressure, only those who bought and HODL over the last year are in the money. With a 2X surge over the previous 12 months, BTC is technically in an uptrend, aligning with gains from the second half of 2023.

Other parallel data shows that long-term holders (LTHs), especially those who bought in the last five to seven years, enjoy a realized price of less than $7,300.

This means that regardless of the current volatility, these HODLers are in the money and can wait for the current shake-out to end.

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