As Bitcoin continues its recent downward trajectory, dipping below the critical $100,000 psychological barrier, a significant on-chain metric has emerged as a potential key support level: the Short-Term Holders Realized Price. This metric, highlighted by prominent analytics firm Alphtractal and shared by Joao Wedson, suggests where Bitcoin might find a floor in its current decline.
According to Alphtractal, Bitcoin has now fallen to a point where it has reached the Short-Term Holders Realized Price, specifically just below $99,000.
This crucial on-chain indicator represents the average acquisition price of all Bitcoin ( BTC ) that have been acquired within the last 155 days. Essentially, it reflects the aggregate cost basis for the most recent wave of investors and traders.
Joao Wedson reiterated this analysis, stating directly, “Short-Term Holder Realized Price is just below $99K. It is likely to act as short-term support. Stay alert.”
Historically, the Short-Term Holders Realized Price has often functioned as a robust support level during market corrections. When Bitcoin’s price drops to this average cost basis for short-term holders, it frequently encounters buying pressure as these newer market participants are less likely to sell at a loss, or new buyers step in, perceiving the price as fair value.
The current test of this level is particularly significant given Bitcoin’s recent volatility , which has seen the asset move from highs above $110,000 to its current sub-$99,000 territory. For traders and investors, the coming hours and days will be critical.
A strong bounce from the Short-Term Holders Realized Price would signal a potential stabilization and a reversal of the immediate bearish trend. Conversely, a sustained break below this level could indicate further capitulation among short-term holders, potentially leading to deeper price corrections.
As the market navigates a period of heightened geopolitical tensions and broader risk-off sentiment, all eyes are now on this specific on-chain metric as it offers a fundamental perspective on where Bitcoin’s price might find its footing. The advice to “Stay alert” underscores the cautious sentiment prevailing as the market awaits whether this key support will hold.
