Since the past week, the
Bitcoin price has traded below the cost basis of one of its most reactive investor groups. Based on recent on-chain information, the world’s largest cryptocurrency might face further trouble if its price fails to reclaim this crucial level.
Notably, Axel Adler Jr. points out that these realized losses have risen across the Bitcoin market. The pundit reports that the Net realized profit is now roughly -$176 million, arising from the difference between $366 million in realized losses and $190 million in realized profits among Bitcoin short-term traders. Adler notes that as long as Bitcoin remains below the STH cost basis, future market rebounds would be mere unconfirmed or temporary retracements. Simply put, these temporary price recoveries below the $80,217 threshold might be relief rallies rather than actual signs of a broader trend reversal.
Hence, before market participants can judge Bitcoin to be displaying bullish intent, the price has to break clearly above the former STH support that might now resist the expansion of Bitcoin’s price. This is because, as the price approaches the STH breakeven (realized) price, investors become more likely to exit their positions, thereby adding bearish pressure.
