Analysts say that BTC is forming a typically 'very bullish' signal.

As explained in the new post on X, BTC has reclaimed the actual price of short-term holders. Here, 'actual price' refers to an indicator that, in short, tracks the average cost basis of BTC market investors. When the value of this indicator is greater than the Spot price of Cryptocurrency, it can be assumed that ordinary holders in this field hold some unrealized profits. On the other hand, when this indicator is lower than the BTC price, it means that market losses dominate.

In the context of the current discussion, we are interested not in the actual price of the entire user group, but in the actual price of a subset of people: short-term holders (STH). STH refers to BTC investors who have purchased Tokens within the past 155 days. Depending on the holding period, this group constitutes one of the two main parts of the BTC industry, with the other part of the market being referred to as long-term holders (LTH).

The chart shows the actual price trend of BTC for this group over the past year. From the chart, it can be seen that the BTC Spot price last month has fallen below the actual price of STH, which means that this group has entered a net loss state.

However, after staying below this line for a while, Cryptocurrency has risen above this indicator with the latest Rebound, allowing the group to regain profitability.

Maartunn pointed out, 'This is usually a very bullish signal.' The chart shows that the asset last broke through this level in October last year after being below this level for a long time. This breakthrough triggered a pump, ultimately leading to the Token reaching its all-time high (ATH).

As for why BTC breaking through STH actual price would become Favourable Information in history, the answer lies in investors' psychology. STH is relatively inexperienced and sensitive to price changes. Specifically, they may react when their average cost basis is retested.

When these investors are bearish, they may decide to sell when the price pumps to their cost basis, as they may be concerned that the uptrend will not continue. Similarly, during bullish periods, their response is to further accumulate, as they can view the cost basis as a profit point for buying more long stocks.

As BTC has recently been able to break through this line, STH does not seem to have encountered resistance at present, so bullish sentiment still dominates.

BTC rose to over $66,000 yesterday, but then experienced some pullback, and the price has now fallen to $64,800.

(Data Source: Keshav Verma)