The Long-Term & Short-Term Holder Realized Price Ratio, which has a complicated name but is quite insightful, is expected to replicate its previous bull signal.
A “favorite” 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. 19, appears to be on the verge of printing a bull flag.
LTHSTH-RPR is one of the most accurate Bitcoin price indicators, despite its lengthy name. Based on its findings in late September, its inventor, Bitcoin 2021 conference organizer Dylan LeClair, verified his own bullishness.
Now, after several months of downward trends, it’s past time for a rebirth — and BTC/USD has always benefitted as a consequence.
LTHSTH-RPR displays the cost basis of long-term and short-term holders under the hood. Glassnode, an on-chain analytics business, defines a long-term holder as an address that has held coins for 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.
“When the marginal seller is depleted, BTC increases. This is why, during spectacular bull runs, the cost basis of LTHs remains stable while the cost basis of STHs (many of whom are new market players) explodes – there are just not enough coins to go around.”
LTH cost basis has not yet been surpassed by STH cost basis; when it does, the present decline should come to an end. LTHSTH-RPR is only one of a handful of BTC price measures that have boosted the bulls in recent weeks, according to data provided by CoinMarketCap.
Everything from on-chain measurements to network fundamentals to pure math implies that Bitcoin will continue to rise in value following a halving event in Q4 of this year.
Analysts, on the other hand, are already looking for a way out of the market. In the short term, the impact of this week’s exchange-traded fund debuts is likewise not expected to be a market mover.
Bitcoin Price Chart – Souce: CoinMarketCap