Bitcoin Nearing Retest Of Realized Price, Will Bulls Break Resistance This Time?
01 November 2022 - 6:00AM
NEWSBTC
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. Related Reading: Bitcoin Whales Who Bought 1
Month Ago Hold Strong Despite Chance To Take Profit 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: 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.
Related Reading: Bitcoin Mining Firm Core Scientific Stock Plunges
Amid Bankruptcy Rumors 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. 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
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