Bitcoin has dropped to around $28,500, nearing a historically significant support line, which is also close to the short-term holder realized price. The realized price is derived from the realized cap model of Bitcoin, which calculates the total valuation of the asset based on the price at which each coin was last transacted. This model takes into account the buying prices of investors and can be seen as a measure of the total capital invested in the cryptocurrency. If the Bitcoin spot price falls below this indicator, it means that the average investor has gone underwater, while breaks above the metric suggest a return to profits. The realized price for short-term holders is currently near the Bitcoin spot price, indicating that these investors are breaking even on their investment. This has historically been a bullish sign, as it suggests that investors see their cost basis as a profitable point for accumulating more assets. It remains to be seen how Bitcoin will interact with the short-term holder realized price this time around.
– Bitcoin has dropped to $28,500, nearing a significant support line
– The short-term holder realized price is derived from the realized cap model
– The realized price reflects the average cost basis or acquisition price in the market
– Falling below the realized price indicates investors going underwater, while breaking above suggests a return to profits
– Short-term holders are currently breaking even on their investment, which has historically been a bullish sign
BTC Price
Bitcoin is currently trading at around $28,500, down 3% in the last week.
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