Bitcoin

Following a significant 10% price correction, the <a href="https://crypto-economy.com/what-is-bitcoin/" rel="noopener noreferrer nofollow">Bitcoin </a>market has rebounded to the $63,000 level, attempting to reclaim the critical Short-Term Holder (STH) cost basis. This recovery comes after one of the deepest one-day sell-offs since the 2022 cycle low, highlighting the market’s resilience despite lighter weekend trading volumes, according to Glassnode’s latest <a href="https://insights.glassnode.com/the-week-onchain-week-41-2024/" rel="noopener noreferrer nofollow">report</a>.<h2 id="header-0">BITCOIN’S SHORT-TERM HOLDERS INFLUENCE ON MARKET DYNAMICS</h2>Short-term holders, typically new market entrants, play a crucial role in defining local price action. The spot price has recently accelerated above and reclaimed the STH cost-basis of $62,500, indicating a constructive market sentiment.However, failure to maintain this level could put recent buyers under pressure, especially given the challenging conditions of the past few months.<h2 id="header-1">MACRO OUTLOOK AND KEY PRICING LEVELS</h2>On a broader scale, the True <a href="https://crypto-economy.com/what-are-cryptocurrencies-and-which-are-the-best-to-invest-in/" rel="noopener noreferrer nofollow">Cryptocurrency</a> Market Mean ($47,000) and the Active Investor Price ($52,500) provide insights into the average cost basis for active investors. The spot price has remained above these levels for most of the year, suggesting a robust market with strong demand support during drawdowns.The URPD metric further indicates that small price fluctuations can significantly impact investor profitability, given the large cluster of coins at the current price level.<h2 id="header-2">FUTURES MARKET SPECULATION AND VOLATILITY</h2>Despite a reduction in long-biased speculation, the futures market shows signs of increasing speculative interest. The directional premium has recently exceeded its &#43;1σ band, indicating a potential return of speculative activity.A substantial $2.5 billion in futures open interest was closed during the recent rally, suggesting a flushing out of short sellers. However, the market remains susceptible to heightened volatility, which could lead to significant price swings due to deleveraging pressures and liquidations.The Bitcoin market’s near-term future hinges on maintaining the STH cost basis. While Short-Term Holders have shown strength, the increasing speculation in futures markets points to potential volatility ahead.The report also indicates a decline in speculative activity within the derivatives market. The weekly cost of leverage for long positions, which reached a peak of $120 million during Bitcoin’s all-time high in March, has now fallen to just $15.3 million.

Bitcoin Short-Term Holders Show Strength, But Futures Volatility Looms Ahead

Table of Contents

Crypto Economy

Other articles published on Oct 9, 2024

SEC Settles Charges with TrueCoin and TrustToken Over Fraudulent TUSD Sales

Caroline Ellison turns in all her assets in FTX lawsuit settlement

Weekly Article Recap: 9/23-9/27

Is Satoshi Nakamoto About to Be Exposed? HBO Documentary Claims to Reveal Bitcoin Creator’s Identity

Top Meme Coins Set for Breakout: DOGS, PopCat, Neiro Lead the Way

Brazil’s Top Crypto Exchanges Set to Launch Real-Pegged Stablecoin BRL1 This Year

Join our free newsletter for daily crypto updates!