Bitcoin reached its peak at $94,300 this week which surpassed the important Short-Term Holder (STH) Cost Basis level of $92,900. The average purchase cost of recent buyers who entered the market at $92,900 serves as a vital marker that has historically fueled both bearish sell-offs and bullish growth according to Glassnode report issued on April 24. The next significant movement for Bitcoin will probably depend on whether it manages to hold above its crucial Short-Term Holder Cost Basis level of $92,900.
Profit-Taking Acceleration
The rising Bitcoin market value has raised the percentage of on-profit supply to 87.3% while the previous trading period maintained 82.7%. Since March 5% of the total supply has been acquired by traders who paid decreased prices. The speed of profit-taking surged substantially because realized profits increased to $139.9 million per hour which represents a 17% rise above the recent lifetime average. The market needs to handle this quantity of selling pressure to sustain its ongoing positive movement.
Key Profitability Metrics Turn Positive
Multiple important market signals have indicated positive trends in the market. Recent STH Supply buys and sales across the market have become balanced because the 1.0 ratio shows neutral conditions. Recent buyers achieved their first profitable sales since February as the STH Spent Output Profit Ratio exceeded 1.0 for the initial time this year according to data.
Strong Institutional Demand
The period brought greater interest from institutions because US spot Bitcoin ETFs received $1.54 billion in daily net inflows which became one of their biggest individual day intake since their release. The flows into Bitcoin ETFs have outpaced those of Ethereum ETFs significantly because Bitcoin spots have attracted over 10% of active inflow while Ethereum spots have maintained less than 1% investment during market rise periods.
Testing the Short-Term Holder Threshold
The Bitcoin market approaches an important transformation point in its development. The following market direction depends on whether institutional investors will take the profits of short-term market participants. An uptrend likely would develop if Bitcoin defends its position above $92,900 while faced with intensified selling. The present price rally will likely have a temporary nature following profit realization if demand cannot support it since historical markets also displayed this pattern during mid-2024.
