The price of Bitcoin resumed its strong start to the year this week, surpassing the $97,000 mark for the first time since November 2025. The flagship cryptocurrency has reignited debates over the current phase of the market in its latest bid to reclaim its six-figure valuation.
After surpassing the formidable technical level of $94,000, Bitcoin price seemed poised to breach the $100,000 mark once again. However, a recent on-chain assessment highlighted an ongoing phenomenon among a specific set of investors in the market.
Bitcoin price action could depend on the price achieved by STH
In a January 16 post on Platform X, pseudonymous crypto analyst Darkfost revealed that the average price realized by short-term Bitcoin holders (STH) is another key level to watch. This price level represents the average price at which the most recent set of BTC investors (1-3 months) acquired their coins.
According to data highlighted by Darkfost, the price realized by STH currently sits at around $102,000, meaning the majority of short-term Bitcoin investors are lost. The market expert noted that this particular valuation is adjusted to account for the 800,000 BTC recently moved by Coinbase.
Darkfost noted that as the price of Bitcoin approaches the price realized by short-term holders, investors are caught between two main choices. This group of investors either hold and hope for further upside, or they exit once they break even.
Given that they are the most responsive set of investors, short-term Bitcoin holders have not hesitated to take short-term profits, as indicated by the latest exchange inflows. Darkfost noted, however, that it will be crucial to monitor the price level achieved by STH once all profit-taking is realized.
Darkfost said Bitcoin price trading below this cost base historically represents a good accumulation opportunity. Nonetheless, the analyst cautioned that bear market periods should be ruled out, as short-term holders tend to witness prolonged declines and pain during this season.
STH Cost Baseline Key to Reaccelerating Momentum
Glassnode analyst Chris Beamish agreed in a recent article on X that the average price realized by STH is a key inflection point. According to the market expert, Bitcoin price recovering this cost base would signal that recent buyers have returned to profit.
Beamish said that the price recovery made by STH would be necessary for the bullish momentum to reaccelerate, while if this were not the case, the BTC market would remain in recovery mode. At the time of writing, the Bitcoin price stands at around $95,300, reflecting no significant changes over the past day.
