• Bitcoin has broken out of all realized price levels for only its fifth time.
• This is seen as a signal that the worst is behind us and the market is recovering.
• The realized price is currently $19,777, while the short-term holder realized price is $18,493 and the long-term holder realized price is $22,437.
It is a momentous day for Bitcoin holders as the cryptocurrency has broken out of all realized price levels for only its fifth time. This is seen as a signal that the worst is behind us and the market is recovering, with the realization that the cryptocurrency could potentially reach new heights in the coming months and years.
The realization of Bitcoin’s price can be determined by looking at the aggregate price when each coin was last spent on-chain. By using Short- and Long-Term Holder heuristics, it is possible to calculate the realized price (estimated average acquisition price) for each investor cohort. The realized price reflects the average on-chain acquisition price for the entire coin supply and the short-term holder realized price reflects the average on-chain acquisition price for coins held outside exchange reserves, which were moved within the last 155 days. These coins are the most probable to be spent on any given day. The long-term holder realized price reflects the average on-chain acquisition price for coins held outside exchange reserves, which have not moved within the last 155 days. These coins are the least probable to be spent on any given day.
Periods where the spot price falls below all cost basis models typically occur in deep bear markets, where the average investor, irrespective of hold time, is holding an unrealized loss. This has been seen in 2012, 2015, 2019, and 2022 and for a very brief period in 2020.
The current realized price for Bitcoin is $19,777, the short-term holder realized price is $18,493 and the long-term holder realized price is $22,437. This news is seen as an incredibly positive sign for the cryptocurrency, as it shows that the market is potentially in the process of recovering from its bearish spell.
For those who are invested in Bitcoin, this news is a welcome relief and a sign that the worst is behind us and the market is on its way to recovery. With the current realized price levels, it looks like Bitcoin holders could be in for a treat in the near future.