A new Glassnode report has revealed that $141,000 could end up being the next major resistance for Bitcoin, should its price break convincingly higher. Bitcoin Is Currently Trading Between These Two STH Pricing Bands In its latest weekly report, the on-chain analytics firm Glassnode has discussed the Short-Term Holder (STH) Cost Basis and some pricing bands derived from it. Related Reading: Bitcoin Buying Spree Ends On Coinbase: Temporary Pause Or Trend Shift? This indicator measures, as its name suggests, the cost basis or acquisition level of the average investor part of the STH cohort. Formally, STHs are defined as investors who have been holding their coins for less than 155 days. This group is made up of the new entrants in the network and high-frequency traders. In other words, it represents the low-conviction side of the market. A cohort called the long-term holder (LTH) group (holding time greater than 155 days) corresponds to BTC’s HODLers. When the price of the cryptocurrency is trading above the STH Cost Basis, it means the STH cohort as a whole is in a state of net unrealized profit. On the other hand, the asset’s value being under the metric suggests the dominance of loss among the cohort. Historically, the STH Cost Basis has served as an important boundary between local bullish and bearish trends. Below is the chart shared by the analytics firm that shows which side of it the asset is trading right now. As displayed in the graph, the Bitcoin price broke through the STH Cost Basis earlier in the year and has since gained a notable amount of distance over it. At the current metric value of $105,400 and the latest BTC price, the STHs are sitting on a net gain of 11.5%. “To add statistical context, we can apply standard deviation bands around the STH cost basis,” explains the report. “These dynamic price zones help identify areas of trend exhaustion or breakout potential.” From the chart, it’s visible that BTC has found resistance at the +1 standard deviation (SD) band multiple times this cycle, with two rejections coming in the bullish push of the last few months alone. Related Reading: XRP Dormant Coins On The Move: Reason Behind Price Plunge? At present, this level lies at $125,100. “From a broader perspective, this suggests that Bitcoin may remain range-bound between $105K and $125K until a decisive breakout occurs,” notes Glassnode. What will happen once a breakout does occur? According to the analytics firm, the +2 SD level situated at $141,600 could become the next major area of resistance instead. At this level, STH profits would have ballooned significantly, raising the chances of mass selling occurring with the motive of profit-taking. BTC Price Bitcoin has continued to consolidate inside its range recently as its price is still trading around $117,600. Featured image from Dall-E, Glassnode.com, chart from TradingView.com Source: newsbtc.com (Read Full Article)