Bitcoin Continues to Slide: Is the 107,000 USD Level the Next Support Threshold?

On-chain data shows that Bitcoin is rapidly approaching the base price of short term holders, and a retest of this price level could change the asset's direction. Bitcoin is Approaching the Realistic Price Level of Short Term Holders As author Axel Adler Jr of CryptoQuant pointed out in a recent post on X, Bitcoin may be nearing the Realized Price of short term holders. The Realized Price here refers to an on-chain indicator that measures the cost basis of investors or the average address on the BTC network. When the spot price of cryptocurrency is traded above this indicator, it means that all holders are sitting on an unrealized net profit. On the other hand, trading below this index indicates that the entire network is sinking. In the context of the current topic, the actual price of a specific segment of investors is being highlighted: short term holders (STH). These are the holders who have purchased BTC in the last 155 days. Here is the chart shared by the analyst showing the actual price trend of Bitcoin STH over the past year:

As shown in the chart above, the price of Bitcoin STH has recently increased as investors have engaged in trading at prices following the price surge. Currently, the average cost basis of holders who purchased in the last five months is $107,000. Previously, this cryptocurrency was at a comfortable distance on this road, but the recent downtrend means that its price has approached the dangerous level of testing this level again. Historically, the Realized Price of STH has often served as an important psychological barrier for Bitcoin. The reason behind this trend lies in the fact that the STH group represents a weaker segment in the market, who tend to react more easily to fluctuations. Generally, when the market is bullish, STH investors respond to retesting the support price from above by accumulating, believing that the "dip" is worth buying. This can turn this level into a support line in an uptrend. Similarly, in a bearish phase, these investors create resistance by selling down to the support price, fearing losses. The actual price of STH is not the only recent support level for current Bitcoin. As Adler Jr highlighted in the chart, the 200-day simple moving average (SMA) of the asset's spot price is currently at 100,700 dollars. Considering this, rechecking the limit area by the Actual Price STH and this technical analysis line, if it occurs, could prove to be an important event for cryptocurrency.