At the time of writing, the exchange rate is about $22,300. Until we break that course, we are unlikely to enter a bull market. This also seems to be a good explanation for the fact that we have been dangling around 20,000 dollars for so long. It is clear that the cost base for short term holders behaves like a resistance to the price. Now let’s talk about why that is the case.
Why is this line so important?
Short-term holders are people who have entered within the last 155 days. These are generally people who are more sensitive to the price in the short term and who know very well at what level they have bought in. If you bought your Bitcoin 5 years ago, the price doesn’t matter much anymore. If you have just bought in, you are often a bit more emotional about the fluctuations that take place.
In that sense, it is easy to explain that the cost basis is so important for short-term holders. This is a somewhat more price-sensitive group of investors, who may not yet be as convinced of Bitcoin as people who have been around for a while. In that sense, the average purchase price of short-term holders is an important line to keep in mind.