Key Insights:
- Bitcoin price moved back above the short-term holder cost basis after spending five months below the level.
- Short sellers faced fresh liquidations as the BTC price recovered and bearish positions became smaller.
- The price of Bitcoin continues to hold key support while traders watch for a move above the 21-day moving average.
Bitcoin (BTC) price has climbed above the short-term holder cost basis after spending five months below it. At the same time, short sellers were forced out of positions as the market recovered. Analysts are now watching whether the latest move can hold above key support levels.
Bitcoin Price Reclaims An Important On-Chain Level
Bitcoin price has moved back above the short-term holder cost basis after staying below it for five months. Bitfinex shared the update, saying the move is important because this level often reflects the average buying price of recent Bitcoin holders.
It is worth noting that when the market trades below it for a long time, many newer investors remain at a loss. A return above it can show that conditions are changing. Bitfinex also compared the current market with earlier bear markets.
In those periods, Bitcoin usually spent five to six months below the same level before moving above it again. The exchange said the latest recovery follows a similar pattern.
Market data also shows that another level receiving attention is the realised price, which is close to $54,000. This measures the average price at which all Bitcoin last moved on the blockchain. According to Bitfinex, that level has never been broken during previous bear markets.
Based on this data, the exchange said the market looks more like the latter part of a bear cycle than the beginning of a new one. While no indicator can predict what comes next for Bitcoin price, the return above the short-term holder cost basis has become one of the main points traders are watching.
Short Sellers Face Pressure As BTC Price Recovers
In a separate development, the latest rise in the BTC price also affected the futures market. Market watcher CW said short positions were being liquidated as Bitcoin rebounded. This happens when traders betting on lower prices are forced to close their positions because the market moves against them.
In his post, CW also pointed to another change. Even before the recent rebound, the total size of short positions had already started to fall. That means fewer traders were expecting another large drop.
At the same time, net position delta continued to move higher. According to CW, the main direction remains upward, indicating that buying activity has strengthened while bearish bets continue to fade. Notably, these changes do not guarantee that Bitcoin price will keep rising. Still, they show that market sentiment has improved compared with recent weeks.
Price Of Bitcoin Holds Key Support
The price of Bitcoin has also remained above an important support area near $61,000. Crypto analyst Michaël van de Poppe said the recent movement looks like consolidation instead of a fresh sell-off.
Several tests of the BTC price at the $65,000 level have already taken place, while support around $61,000 has continued to hold. Van de Poppe believes the next level to watch is the 21-day moving average. He expects Bitcoin to move above that level within the next one to two weeks if current support remains in place.
At the time of writing, CoinMarketCap data showed that the Bitcoin price traded at $62,924.44 with a market value of about $1.26 trillion. Daily trading volume stood at $20.69 billion, while the circulating supply reached 20.05 million BTC.
For now, traders will continue watching whether the Bitcoin price can stay above recent support and build enough strength for another test of higher levels.
 price moved above the short-term holder cost basis as short liquidations rose, with traders watching support near $61,000.){kind=link}