The data shows that Bitcoin has risen above the realized price again as the crypto surges to $22,000. Will the recovery hold this time?
Bitcoin Makes Second Attempt to Break Above 10-Day Realized Price
As one analyst pointed out in a CryptoQuant PublishBTC could finally shoot above the realized price again after spending 33 days below the full level.
To understand what “realized price” is, it is best to first take a look at a quick explanation of the two main methods of capitalization for Bitcoin.
There “market capitalization” is calculated by multiplying each coin currently in circulation by the current price of BTC, and taking the total sum (or more simply, it’s just the total number of coins multiplied by the price).
Where the “cap made” differs is that, instead of taking the same price for all, it instead weighs each coin against the BTC value at which the particular coin was last moved/sold.
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For example, suppose the current Bitcoin price is $22,000 and there are two coins in circulation. If one of these moved at $22,000 while the other at $15,000, the market capitalization will be $44,000, but the realized capitalization will be $37,000.
Now, the realized price is measured by simply dividing the realized cap by the total number of coins in circulation. The graph below shows the trend of this statistic 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 very briefly exceeded the price realized about ten days ago, before falling again,
Historically, late-stage bear markets have lasted as the crypto price remained below the measure line, acting as resistance.
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Today, BTC climbed above the realized price curve again, but it remains to be seen if this time the rally will last. If so, it could mean that the bear bottom for the current cycle could be reached.
Ignoring the brief spikes above the level, Bitcoin has now gone 33 days below the price realized so far. In 2015, the crypto was 9 months below this level, while in 2018 it was a quarter of a year.
BTC price
At the time of writing, The price of bitcoin is floating around $22,000, up 8% in the past seven days. Over the past month, the crypto has gained 8% in value.
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