A new analysis released by CryptoQuant, written by contributor CryptoMe, suggests that Bitcoin (BTC) may still have room to fall this year, and that the collapse could give the ideal purchasing opportunity for long-term investors.
Bitcoin Bottom At $54,000?The Bitcoin Realized Price is, in simple terms, the market’s average cost basis: the price paid for all coins in circulation weighted by when they last moved. Notably, this Bitcoin metric has frequently acted as meaningful support during past bear markets.
Bitcoin’s Realized Price sits at roughly $54,000, compared with a market price near $67,000 at the time of writing— a gap of about 19.4% between these levels.
Prepare For Drawdowns The analyst warned prospective buyers at these levels to be prepared for a potentially extended period of underperformance before prices recover.
Despite those warnings, the analyst concluded on a bullish note: “Below $54,000, Bitcoin is cheap compared to the market average, and it is a perfect place to make gradual accumulation and collect Bitcoin.”
After failing to break through the key resistance level of $76,000 last week, Bitcoin has dropped by almost 12% to its current trading price.
This surge in volatility has been linked to increased Middle Eastern tensions and rising oil prices, which have caused investors to withdraw their funds from riskier assets. As a result, Ethereum (ETH), XRP, and Solana (SOL) have all followed Bitcoin’s price movement, falling to crucial support levels.
Featured image from OpenArt, chart from TradingView.com
