"We begin with the Short-Term Holder Realized Price, effectively the average cost basis for new market participants. This level has historically acted as a dynamic zone of support and resistance throughout each cycle. At present, the STH realized price sits around $113,000, close to where Bitcoin is currently trading. Despite the sharp liquidation event earlier this month, the market has rebounded and stabilized around this level."
"Beyond the realized price itself, we turn to the Short-Term Holder Market Value to Realized Value (MVRV) Ratio, which measures the relationship between Bitcoin's current market price and its aggregate realized price. This ratio helps identify over- or undervalued conditions. Across prior cycles, clear patterns emerge, with Bitcoin consistently finding support around the 0.66 level during large down moves, prime zones for accumulation. On the upside, notable resistance has historically appeared around 1.33, 1.43, and 1.64, corresponding to profit-taking points where new p"
The Short-Term Holder Realized Price represents the average cost basis for recent buyers and functions as a dynamic zone of support and resistance across cycles. The current STH realized price sits near $113,000, roughly aligned with present trading levels after a recent liquidation and rebound. Holding above the STH realized price implies the average recent buyer is at breakeven or slight profit, which tends to increase investor confidence and encourage capital rotation into Bitcoin. The Short-Term Holder MVRV Ratio compares market value to realized value to detect over- or undervaluation. Historical patterns show support near 0.66 during large drawdowns and resistance near 1.33, 1.43, and 1.64 as profit-taking zones.
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