Bitcoin breaks above realized price again, bottom finally in?
Data shows that Bitcoin has broken above the realized price again as the crypto rises to $ 22k. Will the recovery last this time?
Bitcoin makes other attempts to break the realized price in 10 days
As pointed out by an analyst in a CryptoQuant post, BTC may finally shoot above the realized price again after spending 33 days below the level in total.
To understand what the “realized price” is, it is best to first take a look at a quick explanation of the two main methods of capitalizing Bitcoin.
The “market value” is calculated by multiplying each coin in circulation right now by the current BTC price, and taking the total sum (or simpler, it’s just the total number of coins multiplied by the price).
Where the “realized rate” is different is that instead of charging the same price for everyone, it weighs each coin against the value of BTC to which the coin in question was last moved / sold.
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For example, suppose the current Bitcoin price is $ 22k and there are two coins in circulation. If one of these last moved to $ 22k while the other at $ 15k, the market value will be $ 44k, but the realized limit will be $ 37k.
Now the realized price is measured by simply dividing the realized price by the total number of coins in circulation. The chart below shows the trend in this calculation over the last month:
Looks like the BTC price is crossing over the metric's line | Source: CryptoQuant
As you can see in the graph above, the value of Bitcoin rose very briefly above the realized price about ten days ago, before falling again,
Historically, late-stage bear markets have lasted while the price of the crypto has remained below the metric line, and it has served as resistance.
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Today, BTC has once again shot up above the realized price curve, but it remains to be seen whether the recovery this time will last. If it does, it could mean that the bear bottom for the current cycle may be inside.
When we ignore the short peaks above the level, Bitcoin has now spent 33 days below the realized price so far. During 2015, the crypto was 9 months below this level, while in 2018 it was for a quarter of a year.
BTC price
At the time of writing, Bitcoin’s price is floating around $ 22k, up 8% over the last seven days. Over the past month, the crypto has increased by 8% in value.
The price of the coin seems to have surged up over the past day | Source: BTCUSD on TradingView
Featured image from Maxim Hopman on Unsplash.com, charts from TradingView.com, CryptoQuant.com
