Bitcoin ' s recent trends have continued to fluctuate, but the chain data show a signal that used to appear on the back of bear markets. Analysts argue that the cost base of short-term holders has broken down long-term holders, which usually means that the market is approaching the end of the next cycle of the round.
Short-term holder cost dropped long-term holder
It was mentioned that, in order to more accurately reflect long-term investors still active, the long-term holder ' s cost base was calculated by removing bitcoin that had remained unmoved for more than seven years.
After a period of approximately nine months, the cost structure of short-term and long-term holders intersected. Market analysts usually see this phenomenon as one of the chain signals of the near end of the bear market.
It doesn't mean it's gone.
This indicator does not, however, imply that Bitcoin has completed a bottom survey or that a new round of cattle markets has been launched. It is more accurately understood that the market may be entering the final stages of the current bear market cycle.
Such signals more reflect the change in the holding structure than give a clear direction to short-term prices. The indicator is not in itself a stand-alone answer to the “whether or not it is bottom-up” that traders are most concerned about.
Short-term buyers cost reduced to approximately $69,000
Data show that the short-term holder cost base has declined from $11.25 million to approximately $69,000. This suggests that, in the process of market fall, recent buyers continue to buy bitcoin at lower prices.
In terms of chain structure, this means that the cost of new market entry is moving downwards. Such cost replacements, if followed by better moods, may provide conditions for market shifts, but are still seen mainly as signals from the back of Bear City rather than as confirmation that trends have been reversed.