The Bitcoin rally has traders calling for new BTC price highs above the short-term holding scale

Bitcoin (BTC) rose above $62,000 on September 19, above the perceived value of its short-term holding (STH) and showing potential for further gains, according to onchain data.

The guaranteed price of STH is a measure that calculates the average price at which short-term investors—those who have held their coins for less than 155 days—purchased Bitcoin. It acts as a support in highs because these holders are more likely to buy if the price rises above their entry point.

CryptoQuant analyst Avocado_onchain explains that STH's perceived value “has consistently served as a critical support and resistance level for Bitcoin.”

“The average purchase price of these 1-3 month short-term holders is a key onchain metric to monitor as it can determine the future direction of Bitcoin's price.”

Over the past six months, Bitcoin has struggled to stay above this level, now at $61,953.

Data from market intelligence firm CryptoQuant shows that at the time of publication, the price of Bitcoin hovered around $63,855, 1.4% higher than the value of STH.

“If Bitcoin makes daily closes above this level, the market will continue to be positive,” noted analyst Erkan Sak said.

Anonymous crypto analyst Coiner-Yadox added that “the bull market will continue as BTC returns to the top” of STH's perceived value.

According to data from Cointelegraph Markets Pro and TradingView, BTC is trading at $63,576 and sitting on relatively strong support compared to resistance on the way back.

This was confirmed by data obtained by IntoTheBlock, which showed that the immediate support at $62,000 based on STH cost from the Value Around the Money (IOMAP) model was in the price range of $61,625 and $63,510. This equates to approximately 421,820 BTC previously purchased by over 2.45 million addresses.

Any attempts to lower the price can be met by buying from a group of investors who want to maximize their profits.

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CryptoQuant's additional data shows a significant increase in Tucker's buy-to-sell ratio in central exchanges (CEXs).

The buy-to-sell ratio is a key metric that traders use to gauge market sentiment and potential price movements. A ratio above one indicates that more receivers are buying than selling, indicating bullishness, while a ratio below one indicates the opposite.

The chart below indicates that this ratio rose from 0.93 on September 14 to 1.052 on September 16, indicating exceptional buy-side pressure on the CXS.

Overall, a significant increase in the Taker Buy Sell Ratio suggests that a significant number of investors are currently buying Bitcoin in anticipation of further price increases.

This indicates an increase in aggressive buying – which could be a sign of more bullish momentum in the short term.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.