For context, the metric tracks the average acquisition cost of all Bitcoin that has moved in the last seven years, excluding long-term dormant coins, to reflect the cost basis of only active market participants.
When Bitcoin trades above this level, it often means that Bitcoin’s most active holders are doing so while enjoying profits. In this case, there is a reduced probability of panic-driven sales occurring at random.
In Darkfost’s view, a dip below the aforementioned Realized Price is, in fact, a pattern typical of bear markets. However, the crypto pundit explained that this break below the key support level must be confirmed before any news of a downtrend can be considered factual.
Hence, the flagship cryptocurrency’s near- to mid-term future rests on how it moves in the short-term. If Bitcoin can build bullish momentum from its current consolidation, prices would immediately remain clearly above the average cost basis of its investors.
On the contrary, if the Bitcoin price were to close definitively below $72,400, the flagship cryptocurrency could quickly enter a bearish phase, triggered by a mass sell-off likely to follow. This means market participants should watch BTC’s price action around this key level before making financial decisions.
Bitcoin Price At A GlanceAs of this writing, the price of BTC is around $73,540, reflecting a 0.4% decline over the past 24 hours.
