On-chain analytics firm CryptoQuant has pointed out how Bitcoin has tended to revisit its realized price or stay below its realized price in previous bear markets. Currently this level is at $54,000.
Bitcoin has not fallen below its realized price this cycle
In a new after on X, CryptoQuant talked about what the realized price now tells us about Bitcoin. The “Realized Price” here refers to an on-chain indicator that tracks the cost basis or acquisition level of the average investor on the BTC network.
When the spot price of the asset trades above this benchmark, it means that the addresses as a whole are in a state of net unrealized gain. On the other hand, the fact that BTC’s value is below the indicator indicates an underwater status for the overall network.
Here is the chart shared by CryptoQuant showing the trend in the Bitcoin Realized Price over the history of the cryptocurrency:
As shown in the chart above, Bitcoin broke through the realized price at the end of the 2022 bear market and the asset has remained above this line ever since. This suggests that investors have made net gains during this period.
Recently, the cryptocurrency has faced notable bearish momentum, but so far it has managed to stay some distance above its realized price. Currently the statistic is at $54,000.
The chart shows that Bitcoin has generally spent time at or below this level in the past. When the majority of investors are incurring losses, the selling pressure for profit-taking motives begins to run out. This may be why the asset has historically found a bottom below the benchmark.
While the holders as a whole are still in the green, a significant portion of the user base is already underwater at current price levels. As the chart below shows, the short-term holders’ realized price has been floating some distance above the spot price lately.
The short-term holders refer to BTC investors who bought their coins in the last 155 days, so their realized price follows the average purchase price of coins that have moved in the last five months. With the spot price currently below this level, it appears that this group is in a state of loss. “Recent buyers are underwater, creating selling pressure with each rebound,” the analytics firm said.
Strategy, the largest Bitcoin Treasury company in the world, has also seen assets fall below its cost base due to the recent bearish action. Currently, the company’s realized price is around $75,600. “Right where the recent rally was rejected, the market is reacting at this level,” CryptoQuant said.
BTC price
Bitcoin has continued to consolidate sideways lately as the price is currently trading around $68,400.