Bitcoin reaches ‘decision point’ — 4 BTC price metrics to watch
Bitcoin (BTC) has reached a “decision point” for price action, but speculators are in charge, says a new analysis.
In findings uploaded to Twitter on May 26, Checkmate — lead on-chain analyst at Glassnode — revealed a BTC price showdown in the making.
Struggling near key trend lines, BTC/USD is giving an increasing number of long-time market participants cold feet this month.
As downside price predictions flow in, on-chain analysts’ attention increasingly focuses on short-term holders (STHs) when it comes to where the price might head next.
As Cointelegraph reported, various metrics specifically covering STHs — defined as entities hodling coins for 155 days or less — are approaching “reset levels” after a period of exuberance.
For Checkmate, this could be a healthy retracement required for the continuation of the 2023 bull market; but equally, things could now turn ugly.
“Bitcoin is currently at a decision point, with Short-Term Holders being the primary lens to view this correction,” he summarized.
Several metrics covering STH profitability are on the radar.
STH-MVRV measures the value of coins moved by STHs compared to those coins’ value as a portion of the overall Bitcoin market cap. When at 1.0, it corresponds to the STH realized price, which is the aggregate price at which STH coins last moved — their breakeven point.
STH-MVRV is currently at 1.022, making a 1.0 reading equate to a BTC spot price of around $26,500.
“In bull markets, this level ($26.5k) should offer sound psychological support. We can trade below it, but a swift recovery would be necessary to justify upwards continuation,” Checkmate commented.
STH-SOPR, as Glassnode describes it, is a “price sold versus price paid” metric that gauges the profitability of spent
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