bitcoin has surpassed the $31,000 mark with its latest rally. Based on on-chain data, the level could be the next major milestone for btc.
The realized price of bitcoin by 2021 holders is $35,000 right now
in a new mail In X, analyst James V. Straten analyzed the profit and loss situation of the different annual cohorts of bitcoin buyers. The indicator of interest here is the “realized price,” which tracks the average price at which investors in the btc market purchased their coins.
When the asset’s spot price is below this metric, the average sector holder is at a loss at the moment. On the other hand, being above the indicator suggests the dominance of profits among investors.
Here, Straten has not shared the regular realized price chart for the entire circulating supply, but rather some versions of the metric that only consider buyers since the beginning of a particular year. The chart below shows the trend in the realized price of bitcoin for each year since 2017.
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/10/35000-is-the-next-key-level-to-overcome-for-Bitcoin.jpeg" alt="Realized bitcoin Price” width=”1800″ height=”1013″ loading=”lazy”/>
The data for the different realized price levels | Source: @jimmyvs24 on X
As can be seen from the chart, the realized price of bitcoin for all years except 2021 is below the current spot price of the cryptocurrency. This implies that the different annual cohorts of the asset hold their coins with some net unrealized benefit.
The last groups to enter profitability have been those of 2022+ and 2023+. The 2021+ group has a realized price of around $35,000 right now, which is still a long way off, but as Straten noted, the gap between the spot price and the metric is now the narrowest since the two diverged in the first place. . of the bear market.
Interestingly, during the peak of 2021, this group’s cost base was around $48,000. The analyst suggests that its realized price, since it has decreased significantly, indicates an impressive dollar cost averaging (DCA) in the market.
In on-chain analysis, major base cost levels have always played an important role as btc spot price has often seen support or resistance on retests of them.
The chart shows that bitcoin price had found support at the realized price of 2023+ in June. The recent seemingly endless consolidation that btc saw before the latest rally occurred around the 2022+ and 2023+ metrics after they overlapped.
Given the historical examples, the 2021+ may realize that the price will cause the price to react in some way when it finally gets there. Therefore, the $35,000 level would be an important milestone for the asset as successfully affirming it could mean clear waters for the cryptocurrency.
At the same time, however, the chances of participants giving in and reaping their gains are increasing as all of these groups make profits. This profit taking can cause a drop in price, at least in the short term.
btc Price
At the time of writing, bitcoin is trading at around $31,200, up 11% from last week.
<img decoding="async" class="alignnone size-medium aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/10/35000-is-the-next-key-level-to-overcome-for-Bitcoin" alt="bitcoin price chart” width=”1534″ height=”869″ loading=”lazy”/>
Looks like btc has enjoyed some sharp upwards momentum in the last few days | Source: BTCUSD on TradingView
Featured image by Kanchanara on Unsplash.com, TradingView.com charts, Glassnode.com
