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Bitcoin metric prepares to flip green for the first time in 6 months


A “favourite” Bitcoin (BTC) price indicator may be poised to become positive — and evidence shows that upside has usually followed.

The Long-Term & Short-Term Holder Realized Price Ratio (LTHSTH-RPR), as noticed by podcast host Preston Pysh on Oct. 18, appears to be on the verge of printing a bull flag.

The chart suggests a bullish resurgence

LTHSTH-RPR is a Bitcoin price indicator that is one of the most accurate. On the basis of its findings in late September, his inventor, Bitcoin 2021 conference organiser Dylan LeClair, reaffirmed his own bullishness. He explained in a Twitter post:

“Eventually, all bears will die.”

Bitcoin LTHSTH-RPR chart. Source: Preston Pysh/Twitter

It’s past time for a rebirth, since the indication has been moving down for some months. And as a consequence, BTC/USD has always benefitted.

LTHSTH-RPR displays the cost basis of long-term and short-term holders. Glassnode, an on-chain analytics business, defines a long-term holder as an address that holds coins that have not moved in at least 155 days.

“A rising STH:LTH Realized Price Ratio indicates that STH cost basis is increasing relative to LTH cost basis, and vice versa,” LeClair explained.

In fact, when the marginal seller runs out of money, BTC increases. This is why, during spectacular bull runs, the cost basis of LTHs remains unchanged, but the cost basis of STHs (many of whom are new market participants) explodes. “There aren’t enough coins to go around.”

So far, the cost base of LTH hasn’t been surpassed by that of STH. The present slump should come to an end if this occurs.

The storey continues to be “up only”

Everything from on-chain data to network fundamentals to pure math shows that Bitcoin will continue to rise in value after the halving event, which is generally predicted in Q4 of this year.

Analysts are, however, already looking for a way out of the market. In the near term, the impact of this week’s exchange-traded fund debuts isn’t expected to be significant.

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