Bitcoin Surges Above $94,000 Reviving Short-Term Holders’ Profits

Bitcoin has surpassed $94,000, revitalising short-term holder profits. The Realized Price, tracking acquisition costs, indicates significant psychological thresholds. Short-term holders, representing recent investors, have reacted to market changes, impacting Bitcoin’s movement. A recent surge may indicate renewed confidence and potential support levels for future trading.

Recent on-chain data indicates that Bitcoin has surpassed a significant psychological threshold, with the price now exceeding $94,000, effectively reclaiming the cost basis for short-term holders (STHs). The Realized Price is a critical metric that tracks the acquisition cost of average investors in Bitcoin, illustrating whether they are in profit or loss based on current market prices.

The Realized Price specifically assesses the STHs, defined as those who acquired Bitcoin within the last 155 days. This group contrasts with long-term holders (LTHs), who typically retain their investments for longer periods, resulting in different market behaviours. Generally, STHs are more likely to sell during price fluctuations due to their relatively recent investments.

A recent chart reveals that earlier in the year, Bitcoin’s spot price dipped below the STH Realized Price, indicating that these holders faced losses. Consequently, STHs often react to price retests at their cost basis, leading to potential selling pressure if the sentiment is negative. This behaviour can create resistance for Bitcoin’s price, as demonstrated in early March when STHs were under financial strain.

However, Bitcoin has recently managed to break above this resistance level, suggesting a renewed confidence among STHs. If the price continues to stay in profit for this group, it may signal increased bullish sentiment, resulting in their cost basis reinforcing a key support level for Bitcoin. Importantly, Bitcoin’s price experienced a surge of approximately 6%, bringing it to around $93,600 in the last 24 hours, highlighting this recovery phase.