Bitcoin Reclaims Short-Term Holder Cost Basis as the Weekly Moving Average Holds at $81K

Bitcoin is on track for its best August return since 2017, having rallied over 25% so far, according to CoinGlass. That entire move has taken place over the past 10 days with BTC running from $62K on August 17 to a high of $81K on August 25 and now trading at the $78.5K zone. During this move, on August 19, the price crossed above the Short-Term Holder Realized Price at $67,125 and has stayed above it since. Data from Look Into Bitcoin highlights that this is the first convincing reclaim of that level since April last year.

This is an onchain metric that basically tracks the average cost basis of every coin that last moved within 155 days. Think of it as what recent buyers paid on average. When Bitcoin trades below this line, those buyers are at a loss, and they sell into every bounce trying to break-even. This is one of the mechanical reasons why bounces during a bear market often stalls. On the other hand, crossing this line means that these newer buyers are now sitting on unrealized profits and the line becomes a support zone rather than a ceiling or resistance.

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