The price of Bitcoin falls below its “realized price” but is it time to buy the bottom?

The price of Bitcoin falls below its "realized price" but is it time to buy the bottom?

On June 13, cryptocurrency prices plunged deeper into bear territory territory after bitcoin (BTC) broke through its current trading range and hit $ 22,600, the lowest level since December 2020.

According to historical BTC data, the market has now reached valuation indicators which indicate that the price is significantly oversold and may be close to bottom. Bitcoin has now fallen below its realization price, which reflects the average price of each BTC in storage based on the last time it was used on the blockchain.

Realized price of bitcoin compared to real price. Source: Glassnode

While the pain caused by this later ecosystem-wide capitalization cannot be underestimated, the only ray of hope it offers to exhausted crypto traders is that it may be the this reduction is more difficult than the center. The coming days will confirm this theory and it will be the proof that institutions and individual traders will start buying the dip.

The “shrimps and whales” gather.

Data on a chain shows that not all traders are devastated by bitcoin dropping to the annual low level. Shrimp purses, weighing less than 1 BTC, and whale wallets, holding over 10,000 BTC, have been in accumulated mode since the fall of ancient Terra (LUNA), now known as Luna Classic (LUNC), in early May.

Bitcoin accumulation bias score by cohort. Source: Glassnode

According to data from blockchain information provider Glassnode, Shrimp Wallet has seen a net balance growth of +20,863 since the fall of Luna on May 9, ”and a total increase of 96,300 BTC from the peak of history (ATH) in November.

Whale wallets were also busy during this time as “this cohort has a peak monthly position change of ~ 140,000 BTC / month” and added a total of +306,358 BTC since an all time high in November.

Read also: Bitcoin analysts are monitoring these BTC price levels as a key trend emerges

Support is limited in the middle of the $ 20,000 range

The rapid sale on June 13 was partly due to the lack of demand in the $ 20,000- $ 27,000 range, as shown in the following distribution chart of unspent realized prices by entity.

Distribution of realized unspent prizes adjusted by the entity. Source: Glassnode

While strong demand is near the $ 30,000 and $ 40,000 price ranges, some of the weakest volumes were found between $ 20,000 and $ 27,000, leaving little support when the BTC price fell in the early hours of June 13th.

However, there may be relief in sight as the saying goes “it always gets darker before dawn” and may apply to the current state of the crypto market based on a number of indicators.

According to the RVT ratio, which compares realized market capitalizations with blockchain fixed daily volume, “network valuation is now 80 times the daily fixed value,” indicating a low level of activity on the blockchain. .

Adjusted RVT ratio for Bitcoin entity. Source: Glassnode

Glassnode said,

“In bear cycles in the past, an underused network has provided a confluence of bears in the bear market.”

The RVT ratio is currently at its highest level since 2010, which may suggest that the market has reached its maximum pain point and may see improvements soon, but the potential for there will be an additional weakness to rule out.

The global capitalization of the cryptocurrency market now stands at 980 billion dollars and the bitcoin dominance rate is 46.3%.

The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of All investments and trades involve risk. You should do your own research before making a decision.

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