In the previous QuickTake, I discussed the importance of STH data and emphasized the need for a game plan and strategy. Here is the link to that QuickTake: https://cryptoquant.com/insights/quicktake/680119b720e2bf3b9bb8937c-Bull-or-Not-Short-Term-Holder-Data-Tells-the-Story-and-Offers-a-Game-Plan
Today, when we look at the current situation, we can see that the price has reached the STH-Realized Price.
A bull run has certain conditions. For example, premiums (basis, funding rates, option premiums) tend to be positive, the price stays above the Max Pain levels in the options market, and so on. One of the key On-Chain conditions for a bull run is that the price remains above the STH-Realized Price. If the price is below the Realized Prices, we cannot truly talk about a bull run.
If this bull run is to continue, it must meet these conditions. The price must break above the STH-Realized Price, as shown in the image below. Therefore, this metric should be closely monitored.
While the price is below the STH-Realized Price, it would be very smart to hold a HEDGE position in derivatives. If the price moves above the STH-Realized Price, closing the HEDGE position and continuing with the existing SPOT investment would be a wise and two-way game plan.
Written by CryptoMe
