Will Bitcoin rally restart with bullish short-term holders?

The data on the blockchain shows that short-term Bitcoin holders have been buying recently, even though the price briefly dropped below what they paid for it. An analyst in a CryptoQuant post pointed out that the BTC price had fallen below the realized price of the short-term holders. The “realized price” is a metric that’s derived from the “realized cap”, which assumes that the true value of each coin in circulation is not the current spot price, but the price at which it was last moved/sold on the blockchain. The short-term holders refer to investors who bought their coins less than 155 days ago. These investors are generally fickle and their behavior has historically been relevant to the trend BTC has followed. The STH realized price has historically displayed some interesting interactions with the spot price of Bitcoin. During bearish periods, the metric has provided resistance to the price, while in bullish trends, it has switched its role to being a support level. Both these patterns are visible in the graph. The reason for this pattern likely lies in the fact that the STHs look at their cost basis differently depending on the wider trend being followed in the market at the time. During bear markets, the investors look at their acquisition price as a chance to escape, while in rallies, they generally hold a bullish sentiment. From the chart, it’s visible that Bitcoin had recently dipped slightly under this line but has since recovered. At the time of writing, Bitcoin is trading around $26,400, up 2% in the last week.