Bitcoin Correction Tests Key Support, But On-Chain Metrics Point to Accumulation
Bitcoin has pulled back 10% from its recent peak above $124,000, but on-chain signals suggest the correction may be a healthy pause rather than a structural breakdown. The market is now eyeing $108,600 — the average acquisition cost for short-term holders — as the next critical support.
Known as the Short-Term Holder Realized Price (STH RP), this metric tracks the average price of BTC moved within the past 155 days. It’s often a crucial threshold during bull markets, serving as a springboard for rebounds after sharp sell-offs.
So far, Bitcoin has consistently respected this level in 2026, including in April when the price briefly dipped to $76,000 following news of fresh tariffs from President Trump. That event marked the cycle low — and a powerful rebound followed.
Meanwhile, broader investor confidence remains strong. The Realized Price (RP) — which measures the average cost basis for all circulating BTC — continues to climb, alongside the STH RP. Both have increased by over 1% in the past week, highlighting continued inflows from buyers willing to accumulate at elevated levels.
This rising cost basis underscores strong demand, even amid short-term volatility. It also implies that long-term participants are not only holding but buying more aggressively, absorbing selling pressure.
With structural support holding firm and realized metrics rising, the current pullback may represent a routine reset rather than a reversal — particularly if BTC manages to stay above the STH RP zone.
