Bitcoin’s STH cost basis suggests $117K is the next stop for BTC price

Anticipation of Bitcoin's Next Major Price Stop: $117K

According to Bitcoin's Short-Term Holder (STH) cost basis, a latest analysis suggests that the next big milestone for the cryptocurrency could be $117,000. This projection is based on the overall market behaviour and historical patterns observed in Bitcoin's price movements.

Understanding STH Cost Basis

The STH cost basis represents the average price paid by short-term holders - those who've held their Bitcoin for less than 155 days. It gives a hint about the recent trend of Bitcoin buying and selling. When the price of Bitcoin moves significantly above the STH cost basis, it typically suggests that a bull run is underway, as more short-term holders are in profit.

Bitcoin's Journey to $117K

As of now, the current bullish sentiment in the market is underpinned by a variety of factors. Bank adoption, corporate investment, and robust on-chain metrics are among the few that support this optimism. The Bitcoin Fear and Greed Index, a measure of market sentiment, also indicates an intense 'greed' status, which usually points to a continuation of the current uptrend.

Bitcoin's Market Behaviour

Historically, Bitcoin's market behaviour has shown to follow the STH cost basis trend. This is evident from the trends observed during previous bull runs. The Bitcoin price has been seen to surge significantly beyond the STH cost basis during such periods, reinforcing the potential of Bitcoin reaching the $117K mark soon.

Market Sentiment and the Fear and Greed Index

Bitcoinmeter.io has an essential tool for traders, the Fear and Greed Index. This index is extremely useful in understanding market sentiment. When the index is high, it signals that investors are greedy and expect the price to continue its upward trend. Conversely, a low index indicates fear in the market, suggesting a potential price drop. Currently, the Bitcoin Fear and Greed Index is indicating intense greed, supporting the anticipation of Bitcoin's price hitting the $117K mark.

Disclaimer: This content is for informational purposes only and not financial advice. It does not constitute an offer or solicitation to purchase any investment or a recommendation to buy or sell a security. In fact, the content is not directed to any investor or potential investor and may not be used to evaluate or make any investment.