Svmuu News: Analysis shared by blockchain analytics platform CryptoQuant on July 18 shows that the cost basis of short-term holders of Bitcoin has fallen below the adjusted cost basis of long-term holders, triggering a “bear market end” signal. This signal uses a 3-day confirmation window to compare the average purchase prices of short-term and long-term holders.
The analysis indicates that short-term holders are investors who have held Bitcoin for less than 6 months, while long-term holders are those who have held it for more than 6 months. The cost basis for short-term holders has dropped from $112,500 to $69,000, reflecting that Bitcoin purchased within the past 6 months have been traded at lower prices. The analysis states that the adjusted cost basis for long-term holders excludes Bitcoin held for more than 7 years to minimize the impact of dormant supply. The current crossover is described as a shift in the holding structure, pointing to the late stages of a bear market, but it does not equate to confirmation of a market bottom or the start of a new bull market.
The analysis also noted that if the cost basis of short-term holders rises back above the adjusted cost basis of long-term holders, this would align with signals confirming a bull market in previous cycles. Until then, this signal merely indicates that the Bitcoin bear market may be nearing its end.
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Bitcoin The cost basis for short-term holders has fallen below that of long-term holders, triggering a signal that the bear market has ended
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