On-chain analytics firm CryptoQuant has pointed out how Bitcoin has tended to revisit or stay below the Realized Price in past bear markets. Currently, this level is located at $54,000.
Bitcoin Hasn’t Gone Below Realized Price This CycleWhen the spot price of the asset is trading above this metric, it means the addresses as a whole are in a state of net unrealized profit. On the other hand, BTC’s value being below the indicator suggests an underwater status for the overall network.
Now, here is the chart shared by CryptoQuant that shows the trend in the Bitcoin Realized Price over the history of the cryptocurrency:
As displayed in the above graph, Bitcoin broke through the Realized Price at the end of the 2022 bear market and since then, the asset has maintained above this line. This suggests that investors have enjoyed net profits in this period.
Recently, the cryptocurrency has faced some notable bearish momentum, but so far, it has managed to stay some distance above the Realized Price. Currently, the metric is situated at $54,000.
From the chart, it’s visible that past bear markets generally saw Bitcoin spend time at or below this level. When the majority of the investors are in loss, selling pressure with the motive of profit-taking starts running out, so it may be why the asset historically found bottoms below the metric.
The short-term holders refer to BTC investors who purchased their coins within the past 155 days, so their Realized Price tracks the average buying price of coins that moved over the last five months. With the spot price currently being under this level, it would appear that this group is in a state of loss. “Recent buyers are underwater, creating sell pressure on every bounce,” noted the analytics firm.
BTC PriceBitcoin has continued to consolidate sideways recently as its price is trading around $68,400 right now.
