Bitcoin’s Recent Bottom and Investor Cost Basis
Recent data suggests that Bitcoin hit its bottom near the cost basis of active investors following the recent price crash. This important level serves as a key indicator of market sentiment and potential future price movements.
Understanding Key Indicators
- The Realized Price: Determines the average investor’s acquisition price on the BTC network.
- This metric considers the transaction history of each token in circulation to calculate the current cost basis.
- The Liveliness: Tracks spending and HODLing behavior among investors.
- Calculates the ratio between coin days destroyed and created, reflecting market sentiment.
- The Realized Price-to-Liveliness Ratio: Also known as the Active Investor’s Cost Basis.
- Adjusts Bitcoin’s fair value based on HODLing or distribution patterns.
- Helps identify bullish or bearish investor sentiment.
Bitcoin’s Current Price Movement
Following a nearly 4% increase in the past 24 hours, Bitcoin’s price now stands above $61,000. This uptick in price comes after finding support near the Active Investor’s Cost Basis, indicating underlying market strength and positive sentiment going forward.
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