- Bitcoin (BTC) hits new ATH this week, showing strong bullish sentiment
- Cryptoquant reports BTC reclaimed its Short-Term Holder Average Cost Basis, a key “buy-the-dip” sign
- Analysts now see Bitcoin’s old ATH around $109K as fresh support, expecting this new rally phase to run
Bitcoin achieved a new milestone this week by reaching a new all-time high. The cryptocurrency’s latest upsurge boosted its renewed bullish sentiment and has opened a new frontier that could push the crypto’s price towards much higher prices.
Data from the onchain data analysis provider, Cryptoquant, shows that Bitcoin is rallying after reclaiming the Short-Term Holder Average Cost basis. According to Cryptoquant, the cryptocurrency’s current level is crucial and represents a significant buy-the-dip indicator during bull markets.
Cryptoquant: Bitcoin Reclaiming STH Cost Basis a Key “Buy-the-Dip” Signal
For context, a buy-the-dip signal occurs during extended bull runs, when a digital asset embarks on a protracted rally with massive momentum. Typically, investors capitalize on pullbacks during such periods to re-enter the market and maximize profit-making opportunities. Per the latest observation, Cryptoquant highlighted Bitcoin’s Short-Term Holder Realized Price as an inflection point and a crucial indicator under the current dispensation.
Related: Bitcoin Price Prediction for May 24: Bulls Pause Near $112K as Breakout Momentum Cools
Using chart evidence, Cryptoquant showed how Bitcoin’s price fell below the Average Cost Basis of Short-Term Holders, a crucial indicator for the bull market. Analysts observing this indicator during bull markets consider it decisive for buy-the-dip signals. Hence, appearing amid Bitcoin’s heightened bullish sentiment reinforces the cryptocurrency’s bullish appeal and boosts investors’ confidence.
Bitcoin Surged To New ATH; Analysts See New Bull Phase, $109K as Support
Bitcoin surged close to $112,000 for the first time on Thursday, May 22, overcoming the previous resistance and recording a new all-time high. Despite the notable gains of the past few weeks that pushed Bitcoin to its current level, most analysts believe the cryptocurrency has just entered a new phase with high expectations.
With a bull run in perspective, many analysts consider Bitcoin’s previous all-time high of $109,356 the new base and latest support. They believe the cryptocurrency will surge massively in the coming months, fulfilling the expectations of many users since the last Bitcoin Halving.
Related: Glassnode Reveals Shocking Drop in Bitcoin Profit-Taking Despite All-Time Highs
An emerging buy-the-dip signal significantly reinforces the analysts’ position and boosts Bitcoin traders’ confidence ahead of the new season.
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