Bitcoin Short-Term Holders Take The Hit As Realized Price Dips Below Cost Basis

After a period of bearish trend throughout last week, Bitcoin’s price is now slowly picking up its pace as it heads toward the pivotal $112,000 ￰0￱ this negative action, short-term BTC investors appear to be the ones taking the impact of the crash the most, as the price drops below the STH’s Realized ￰1￱ Price Signals Pressure On New Bitcoin Investors Bitcoin’s Realized Price metric is painting a clear picture of who’s bearing the brunt of the latest market downturn, and it’s the short-term ￰2￱ sharp decline in the price of Bitcoin following a broader market crash has put short-term BTC holders on edge. On-chain data shows that these key investors, especially the ones who entered the market most recently, are feeling the pain in the ￰3￱ reported by Darkfost, a market expert and author at CryptoQuant, the investors are underwater due to the price falling below the short-term holders’ cost ￰4￱ examining the Bitcoin Realized Price – UTXO Age Bands metric, the expert revealed that the cost basis from 1m–3m STHs is currently sitting around $114,700, which BTC is still trading ￰5￱ this means is that these investors, who acquired BTC at higher prices during the recent rally, are now facing losses.

However, for investors who entered more than 3 months ago, their cost basis is positioned closer to the $106,800, just like those acquiring the flagship asset right ￰6￱ BTC trading above the $111,000 price level, this positioning implies that these slightly older investors are still in ￰7￱ to Darkfost, the investors are currently serving as a buffer zone, and their price range continues to hold up well as a strong support point. Nonetheless, in earlier corrections, even this group was finally put under ￰8￱ short-term holders under pressure, the expert has pointed out two possible scenarios that could unfold in the upcoming ￰9￱ has predicted that the short-term holders are likely to continue defending their cost basis, building a strong and firm support level for a bullish ￰10￱ the other hand, these investors could also be forced to capitulate for a short period before the market regains its upside ￰11￱ though the market awaits any of the scenarios, the expert noted that these corrections are probably coming to an end in both cases.

A Rise In Capitulation Amid The Crash In the meantime, Darkfost has highlighted that capitulation is intensifying, but this is a situation that is required within the ongoing waning market action. BTC’s shortest-term investors are beginning to capitulate ￰12￱ rising capitulation implies a surge in selling pressure among the newest ￰13￱ the weekend, BTC Realized losses (7-day MA) rose to $750 million per ￰14￱ figure marks one of its highest levels in the ongoing cycle when compared to what was observed around the summer 2024 ￰15￱ the cycle progresses, Darkfost has stressed the importance of monitoring these capitulation ￰16￱ is because they usually represent local bottoms, as long as the bear market is not entering the early stages.