The data show that Bitcoin has once again surpassed the realized price as cryptocurrencies surged to $ 22,000. Will recovery continue this time?
Bitcoin makes a second attempt to exceed the realized price in 10 days
As an analyst at CryptoQuant pointed out PositionBTC may eventually exceed the realized price after a total of 33 days below.
The best way to understand what a “realized price” is is to first look at a brief description of Bitcoin’s two major capitalization methods.
“Market capitalizationIs calculated by multiplying each coin currently in circulation by the current BTC price and taking the sum (more simply, the total number of coins multiplied by the price).
Where “Realization capThe difference is that instead of adopting the same price for all, each coin is weighed against the value of BTC where a particular coin was last moved / sold.
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For example, suppose your current Bitcoin price is $ 22,000 and you have two coins in circulation. If one of these finally moved for $ 22k and the other for $ 15k, the market capitalization would be $ 44k, but the realization limit would be $ 37k.
Currently, the realized price is measured simply by dividing the realized cap by the total number of coins in circulation. The following graph shows trends in this indicator over the past month.
Looks like the BTC price is crossing over the metric's line | Source: CryptoQuant
As you can see in the graph above, the value of Bitcoin slightly exceeded the realized price about 10 days ago and then fell again.
Historically, the late bear market continued while crypto prices remained below the metric line, which acts as a resistance.
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Today, BTC has again crossed the realized price curve, but it is not yet known if this recovery will continue. If so, it may mean that the bear bottom of the current cycle may be in it.
Ignoring short spikes above the level, Bitcoin has so far spent 33 days under the realized price. In 2015, cryptocurrencies were at this level for nine months, but in 2018 it was a quarter year.
At the time of writing Bitcoin price It has increased by 8% over the last 7 days and fluctuates at around $ 22,000. Over the past month, the value of cryptography has increased by 8%.
The price of the coin seems to have surged up over the past day | Source: BTCUSD on TradingView
Featured image from Maxim Hopman on Unsplash.com, charts from TradingView.com, CryptoQuant.com