$35,000 The Next Key Level To Break For Bitcoin, Here’s Why
October 23 2023 - 2:30PM
NEWSBTC
Bitcoin has now broken the $31,000 mark with its latest rally.
According to on-chain data, the level could be the next major
milestone for BTC. Bitcoin Realized Price Of 2021 Holders Is
$35,000 At The Moment In a new post on X, analyst James V.
Straten has discussed the profit/loss situation of the different
yearly Bitcoin buyer cohorts. The indicator of interest here is the
“realized price,” which keeps track of the average price at which
investors in the BTC market bought their coins. When the asset’s
spot price is below this metric, the average holder in the sector
is at a loss right now. On the other hand, it being above the
indicator suggests the dominance of profits among the investors.
Related Reading: Crypto Analyst Points Out Bitcoin Sell Signal That
Could Be Triggered Today Here, Straten hasn’t shared the chart for
the ordinary realized price for the entire circulating supply but
rather a few versions of the metric that only consider buyers since
the start of a particular year. The chart below shows the trend in
the Bitcoin realized price for each year since 2017. The data for
the different realized price levels | Source: @jimmyvs24 on X As is
visible in the graph, the Bitcoin realized price for all years
except 2021 is below the current spot price of the cryptocurrency.
This implies that the different yearly cohorts of the asset are
holding their coins at some net unrealized profit. The latest
groups to enter into a state of profit have been the 2022+ and
2023+ ones. The 2021+ group has a realized price of about $35,000
at the moment, which is still a significant distance away, but as
Straten has noted, the gap between the spot price and the metric is
now the narrowest since the two diverged back at the start of the
bear market. Interestingly, during the peak in 2021, this group’s
cost basis was around $48,000. The analyst suggests their realized
price, since decreasing significantly, indicates some impressive
Dollar-Cost Averaging (DCA) in the market. In on-chain analysis,
major cost basis levels have always played an important role, as
the BTC spot price has often observed support or resistance on
retests of them. The chart shows that the Bitcoin price had found
support at the 2023+ realized price back in June. The recent
seemingly endless consolidation that BTC saw before the latest
rally happened around the 2022+ and 2023+ metrics after they had
overlapped. Related Reading: Bitcoin Price’s Next Move Up Will Be
Extremely Explosive: Galaxy Given the historical examples, the
2021+ may realize price will cause the price to react somehow when
it eventually reaches there. Thus, the $35,000 level would be a
significant milestone for the asset, as successfully claiming it
could imply clear waters ahead for the cryptocurrency. At the same
time, however, the chances of participants buckling and harvesting
their gains are increasing with all these groups coming into
profits. Such profit-taking can lead to a pullback in the price, at
least in the short term. BTC Price At the time of writing, Bitcoin
is trading at around $31,200, up 11% in the past week. Looks like
BTC has enjoyed some sharp upwards momentum in the last few days |
Source: BTCUSD on TradingView Featured image from Kanchanara on
Unsplash.com, charts from TradingView.com, Glassnode.com
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