Bitcoin is trading in the $117,000 price region after a rather eventful week, allowing investors to experience both sides of the market volatility. Notably, the best cryptocurrencies established a new all-time high of $124,457 before experiencing a sharp crash to under $118,000 driven by recent US PPI data. As enthusiasts await the next move in their assets, renowned analytics firm GlaaSnode has announced potential price targets based on short-term holders (STH) market activities.
Short Term Holder Cost-Based Tips Bitcoin Races to $144K
In the X post on August 16th, GlassNode shares data from the Bitcoin Sth cost-based model. This suggests that cryptocurrency is heading towards overheating territory. In the context, a short-term holder refers to an entity that has acquired BTC within the last 155 days. Its cost-based, or the average price of an acquisition, often serves as a proxy for the sentiment and profitability of new market participants, determining the short-term price dynamics.
GlassNode’s on-chain data shows that Bitcoin’s STH cost base has risen to $107,000, with the standard deviation band showing the next important resistance at $127,000: In particular, this price level is consistent with the +1σ band, which is often considered a “heated” market threshold. This zone is expected to mark the start of integration or serve as a major pivot point that acts as an upward launchpad for the euphoric final leg.
However, if Bitcoin can be decisively broken over $127,000, the STH deviation band suggests that it could trigger a market purchase momentum, pushing the price up to the +2σ band in the $144,000 zone. In particular, the +2σ band is often referred to as the overheating area, as it often coincides with local or upper part of the cycle and introduces large selling pressure from investors.
Meanwhile, the $107,000 base STH cost base now serves as important short-term support. Therefore, a breakdown below this could mean less reliable among recent buyers. In such a bearish scenario, the market may turn its attention to the low deviation-1σ band of $93,000, and investors may expect some price stability.
Bitcoin price overview
At the time of writing, Bitcoin was trading at $117,396, reflecting a 1.02% price drop in the last 24 hours. Meanwhile, daily trading volumes also crashed by 33.56%, currently valued at $7005.6 billion.
In particular, popular analyst Ali Martinez is hinting at the best cryptocurrency to recover quickly after last week’s flash crash. Market experts explain that Bitcoin always produces price rallies following a decline in PPP induction.
