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<\/p>\nBitcoin is trading in the $117,000 price region following a rather eventful week, which allowed investors to experience both sides of the market volatility. Notably, the premier cryptocurrency established a new all-time high at $124,457 before experiencing a sharp crash to below $118,000 driven by recent US PPI data. As enthusiasts await the asset\u2019s next move, prominent analytics firm Glaasnode has unveiled the potential price targets based on short-term holders\u2019 (STH) market activity.\n<\/p>\n
In an Bitcoin STH cost basis model, which suggests the cryptocurrency is headed for an overheating region. For context, short-term holders refer to entities that acquired their BTC within the last 155 days. Their cost basis, i.e., average price of acquisition, often serves as a proxy for the sentiment and profitability of newer market entrants, thus dictating short-term price dynamics.<\/p>\n
Glassnode\u2019s on-chain data shows that Bitcoin\u2019s STH cost basis has now climbed to\u00a0 $107,000, with standard deviation bands indicating the next crucial resistance at $127,000. Notably, this price level aligns with the +1\u03c3 band, often viewed as a \u201cheated\u201d market threshold. This zone is expected to act as a major pivot point, either marking the onset of consolidation or serving as the launchpad for a euphoric final leg upward.<\/p>\n
However, if Bitcoin can decisively break above $127,000, the STH deviation bands suggest it may trigger accelerated market buying momentum, potentially pushing the price toward the +2\u03c3 band at $144,000 zone. Notably, the +2\u03c3 band is termed as the overheating region as it often coincides with local or cycle top and frequently introduces significant sell pressure from investors.<\/p>\n
Meanwhile, the base STH cost basis at $107,000 now serves as a crucial short-term support; therefore, a breakdown below this could imply weakening confidence among recent buyers. In such a bearish scenario, market attention would turn to the lower deviation -1\u03c3 band at $93,000, at which investors may expect some price stability.\n<\/p>\n
At the time of writing, Bitcoin was trading at $117,396, reflecting a price decline of 1.02% in the past 24 hours. Meanwhile, daily trading volume has also crashed by 33.56% and is now valued at $70.56 billion.<\/p>\n