Notably, the STH cost basis has often acted as a pivotal level between profit and loss for recent buyers.

If BTC continues to trade above this critical threshold, it could reinforce bullish momentum among short-term holders.

According to Glassnode's latest report, BTC must remain above the Short-Term Holder (STH) cost basis of approximately $92,500 to avoid potential declines.

Currently, Bitcoin (BTC) is trading between $93,000 and $98,000, reflecting a 1.2% increase in the last 24 hours.

The market is approaching a decisive moment, with potential for sharp price action in either direction depending on demand and buy pressure.

Currently, the crypto market is in an accumulation phase similar to that of May 2021, rather than the previous cycle of April 2024.

Conversely, if BTC falls below the STH cost basis, it could signal an unrealized loss for average short-term holders, potentially triggering panic selling.

A significant decline in the US dollar could benefit Bitcoin, while renewed sentiment around BTC may help stabilize prices after a recent slump.

Historical data suggests that BTC downtrends have typically extended to about -1 standard deviation below the STH cost basis, indicating a possible decline to as low as $71,600 in the current market cycle.