BlockBeats News, July 12th. Analyst Darkfost pointed out that Bitcoin being below the Short-Term Holder (STH) Cost Basis for an extended period is a typical feature of each bear market cycle. Currently, BTC has been running below this level for over 9 months. The STH Cost Basis is currently at $70,700, serving as a persistent resistance level. In May, Bitcoin attempted to test this level around $82,000 but faced a retracement. Subsequently, the STH Cost Basis saw a significant decrease, indicating that some investors have been accumulating at lower levels, reducing their average holding cost. However, the price has not been able to firmly reclaim this key level so far.

The analysis believes that a sustained recovery above the STH Cost Basis would be the first positive signal. The current Bitcoin price is fluctuating in the range of $59,000 to $64,000, still notably below the $70,700 resistance. If there is a successful breakthrough and stabilization above this level, it would signify that short-term holders, on the whole, have moved out of the unrealized loss zone. Market sentiment may shift from bear market defense to structural repair. On the contrary, if there is continued resistance, the STH Cost Basis will keep descending, potentially further extending the bear market bottoming period.