Recovery signs emerged after the recent dip, but key support levels may be at risk
Bitcoin's [BTC] short-term holders are currently navigating some stormy seas, with every investor who jumped on board within the last 155 days now facing the chilly waters of unrealized losses. Trading below the elusive $92k-mark - the Short-Term Holder Realized Price - Bitcoin has been struggling to surge again.
This level has historically acted as a springboard for bull runs. However, in this cycle, it's been more of a sinking ship. And yet, after a rocky stretch, recovery in last 12 hours has sparked a glimmer of hope. Could this be the calm before the storm, or are we in for another wild ride?
The Short-Term Holder Net Unrealized Profit/Loss (STH NUPL) measures whether investors who bought Bitcoin in the last 155 days are in profit or loss.
When the STH NUPL turns negative, it signals capitulation among recent buyers, often coinciding with local bottoms. Historically, the STH Realized Price has acted as a crucial support level, as seen in 2017 and 2021.
Right now, Bitcoin is well below the STH RP of $92k, marking a critical psychological shift.
If BTC fails to reclaim this level, short-term holders may continue to sell, amplifying downside pressure. However, past cycles have also shown that such breakdowns often precede strong recoveries.