Skip to main content

Bitcoin Nearing Retest Of Realized Price, Will Bulls Break Resistance This Time?

Data shows Bitcoin is now approaching another retest of the realized price, will the bulls be able to blow through the resistance this time?

Bitcoin’s Recent Upwards Momentum Has Brought It Near Realized Price Again

As pointed out by an analyst in a CryptoQuant post, BTC has spent a total of 138 days under the realized price so far since the June of this year.

Before we look at the data for the Bitcoin realized price, it’s best if a basic understanding of the “realized cap” is attained first.

The realized cap is calculated by multiplying each coin in the circulating supply with the price at which the particular coin was last moved or sold at, and then taking the sum for the entire supply.

This is different from the usual market cap, which doesn’t weigh each coin separately like this, and simply multiplies the entire supply with the current BTC price.

Now, if the market cap is divided by the total number of coins in circulation, we obviously get back the BTC price. Much in the same way, a “realized price” can also be derived from the realized cap.

The significance of the realized price is that it’s the cost-basis of the average investor in the Bitcoin market. Here is a chart that shows how the normal price has compared with this one during the last six months:

Bitcoin Realized Price

Looks like the two metrics have been approaching each other in recent days | Source: CryptoQuant

As you can see in the above graph, the Bitcoin price has been below the realized price during the last few months, but has recently started approaching it as a result of the bullish momentum.

Historically, the realized price has posed a resistance to the crypto’s value during bear market periods, keeping it trapped in the region below.

During 2015, BTC spent 300 days under this level, while during 2019 it remained in the zone for only 133 days.

So far in the current year, Bitcoin has found itself below the realized price for a total of 138 days, with a couple of exceptions. One of the instances of the opposite was the relief rally back in July-August, which helped the price stay in the zone above for almost a month.

The coin has failed to break this resistance several times already in the last six months, so it remains to be seen whether bulls can keep up the momentum this time and find some ground above the level or not.

Bitcoin Price

At the time of writing, Bitcoin’s price floats around $20.7k, up 7% in the last week.

Bitcoin Price Chart

The value of the crypto seems to have been stable above $20k recently | Source: BTCUSD on TradingView Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com

from NewsBTC https://ift.tt/Ixa0KOR
via IFTTT
Labels:

Comments

Post a Comment

Any questions, Please.

Popular posts from this blog

Five Bitcoin Price Charts Analyzing The Dramatic Q1 2022 Conclusion

There are only hours remaining until the Q1 2022 close in Bitcoin price action. With the important quarterly candle set to close tonight, let’s look at what technicals might say about the direction of the next quarter. Q1 2022 Comes To A Close For Bitcoin The first quarter of a year, often sets the tone for the year to come. In investments, a poor Q1 performance is indicative of a bad year ahead. Considering the fact that Bitcoin price is now above $45,000 after touching $32,000 this quarter, it is tough to say the performance has been “poor” by anything other than crypto standards. Related Reading | Bitcoin Weekly Momentum Flips Bullish For First Time In 2022 The cryptocurrency has recovered nearly 40% from the low, leaving a long wick behind. Such a long wick suggests that before the quarter came to a close, buyers stepped up in a major way. Buyers were able to step up in a larger capacity in Q1 2022 than bears were able to in the final quarter of last year. The bearish wick to cl...
Post a Comment
Read more

ENS DAO delegates offer perspective on DAO governance and decentralized identity

AlphaWallet CEO and Spruce co-founder talk about their roles as contributors to the Ethereum Name Service following the project's recent airdrop. Earlier this month, the Ethereum Name Service, or ENS, formed a decentralized autonomous organization, or DAO, for the ENS community.  Cointelegraph spoke to two ENS DAO delegates who applied for the opportunity to represent the community and stay involved in the decision making process: Victor Zhang, CEO of AlphaWallet, an open source Ethereum wallet, and Gregory Rocco, co-founder of Spruce, a decentralized ID and data toolkit for developers. Zhang spoke about his experience as an external contributor to ENS and an early supporter since 2018. Zhang initially sought to help ENS by offering Alpha Wallet as a user-friendly tool for  resolving .eth names and cryptocurrency wallet addresses. Essentially, if a user inputs an .eth name in the AlphaWallet, it will show the wallet address, and vice versa using reverse resolution. Alpha...
Post a Comment
Read more

How Social Platform Chingari is Using Web 3.0 to Transform the Traditional Way We Use Social Media

The world is changing. This isn’t news to anyone, but sometimes it is nice to realize that—contrary to news headlines—not all the change is bad.  In fact, the last decade has seen so much innovation and so many improvements to technology that even 2015 seems like a different world.  Internet speeds, connecting with anyone globally (for free), and our ability to reach large groups of people without a middleman is nothing short of revolutionary. When it comes to technology evolution, this often happens with different iterations.  Once a system is mature, there’s a better idea of what we would like to change and improve.  We go back to the drawing board, target our creative minds at the issues, and create a new version that has evolved to better meet our needs.  The Internet has followed this model since its inception, evolving through three distinct stages.  We are only at the cusp of the third stage, called Web 3.0, with technologies such as blockchain and ...
Post a Comment
Read more