Analysis: Bitcoin reclaiming $70,700 is the key signal of a trend reversal, with some long-term investors already accumulating at lower levels

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 characteristic 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 drop, indicating that some investors have been accumulating at lower levels, reducing their average holding cost. However, the price has yet to firmly establish itself above this key level.

The analysis believes that a sustained reclaiming of the STH cost basis would be the first positive signal. The current Bitcoin price is fluctuating between $59,000 and $64,000, still a significant distance from the $70,700 resistance. If the price can effectively break through and hold above this level, it would mean that the overall group of short-term holders has moved out of a loss-making position, and market sentiment may shift from bear market defense to structural repair. On the other hand, if it continues to face resistance, the STH cost basis will keep moving down, potentially lengthening the bear market bottoming period.