This week, Bitcoin officially established a new milestone by reaching an all-time high, surpassing the previous resistance level and approaching $112,000 on May 22. This strong price increase not only ignited investor optimism but also marked the beginning of a new growth cycle for the world's leading cryptocurrency.
CryptoQuant: Bitcoin Price Surpasses Short-Term Investor Average Cost – An Important 'Buy the Dip' Signal
According to data from the on-chain analysis platform CryptoQuant, an important technical signal has emerged as Bitcoin's price surpasses the Average Cost Basis of short-term holders (STH). This is the average price at which this group of investors has recently purchased Bitcoin and is seen as a psychological and technical support level in a bull market.
CryptoQuant emphasizes that during prolonged growth cycles, when Bitcoin's price recovers above this cost threshold, it is often a clear signal to 'buy on dips.' Professional investors often take advantage of slight corrections during the upward trend to accumulate more positions, expecting to benefit from the next rise.
Old High Becomes New Support – A New Growth Cycle Is Starting
After breaking the old high of around $109,356, many analysts believe this is indeed the new support level and a launchpad for Bitcoin to continue rising to higher price levels. The recent Bitcoin Halving has created strong expectations within the community, and currently, both technical factors and market sentiment are supporting a new price increase phase.
The emergence of the 'buy-the-dip' signal from on-chain analysis further reinforces investors' confidence that the market is truly entering a new bull market, with significant potential to reach unprecedented price levels.
Conclusion
Bitcoin breaking its historical high and triggering the 'buy when the price drops' signal is a positive indicator for the entire crypto market. With support from on-chain data analysis and expectations from the Halving cycle, many experts do not rule out the possibility that Bitcoin will continue to set new highs in the near future. Investors need to closely monitor technical support levels and seize opportunities during corrections to optimize profits.