This Critical Metric in Bitcoin Could Trigger the Start of Bull Season

• BTC recently experienced a significant drop and fell from $29,500 to $28,300. This drop indicated a significant change that brought short-term holders closer to the realized price.
• The drop in Bitcoin’s price represents a critical moment. It is not just a numerical value, but also the confidence of investors.
• If the price returns from the STHRP level, a bull run may emerge, reinforcing the support level and indicating a potential revival in an upward trend.

This metric, which examines the movements of short-term investors in Bitcoin, could play a critical role in the future price of BTC.

Bitcoin Price Falls Below $29,000

Bitcoin (BTC) retested the realized price (STHRP) of short-term holders after falling below the psychological support level of $29,000.

CryptoQuant, an important on-chain analytics source, recently highlighted this development. In the analysis, a CryptoQuant analyst emphasized the importance and impact of this metric on the market.

BTC recently experienced a significant drop and fell from $29,500 to $28,300. This drop indicated a significant change that brought short-term holders closer to the realized price.

The CryptoQuant report emphasizes the importance of the STH RP indicator. This indicator represents the average cost at which investors who hold BTC for less than 155 days realize their profits.

The drop in Bitcoin’s price represents a critical moment. It is not just a numerical value, but also the confidence of investors. According to the CryptoQuant analyst, if the price remains below this level for a long time, it may indicate a decrease in confidence among these holders.

Equally important is the potential impact on market dynamics. Short-term holders are known to be more responsive to changes in the market environment. Moreover, ongoing downward pressure, if the trend continues, may lead them to consider selling their assets, further increasing the pressure in the current bear market.

The report also draws on historical context for better insights. Analysts provide a careful perspective parallel to the major corrections that occurred in March and June 2023.

Bitcoin at a Turning Point

These historical events serve as a reference point indicating the critical support level. The analyst examines possible scenarios depending on whether BTC falls below or returns from this metric.

Furthermore, if the price returns from the STHRP level, a bull run may emerge, reinforcing the support level and indicating a potential revival in an upward trend.

On the other hand, if the price definitively breaks the STH RP level, the bearish outlook becomes apparent. This may trigger a more profound correction and further increase the pressure if short-term holders start selling their assets.

Meanwhile, this analysis coincides with a period when BTC fell below the $29,000 threshold for the first time in a week and recorded a 2% decrease in the past 24 hours. This downward trend followed its rise to $30,244 on August 8.