Glassnode’s Short-Term Holder Cost Basis model tracks the average price at which recently acquired coins are held by short-term investors. The metric reflects the cost base of those buyers and complements price-based analysis by focusing on on-chain activity. By isolating activity from new entrants, the indicator offers a micro view of entry price dynamics in the current regime.
When price action tests these cost bases, traders watch whether the baseline acts as support or resistance. A rising cost basis suggests fresh buying near higher prices, which can provide support during pullbacks. Conversely, a falling baseline may signal capitulation or distribution among short-term holders, potentially foreshadowing more downside pressure.
Market participants can use the metric alongside price trends and other on-chain signals to gauge sentiment and potential turning points. As with any single indicator, interpretation should consider broader market context and macro drivers.
Leave a Reply