Such a change in trend can often bring near-term relief in $BTC price as general confidence returns to the market. This can then have a knock-on effect, due to a reduction in forced selling, which in turn also has a positive impact on price.
Such periods are highlighted on the chart above when the red bars disappear due to price increasing along with the hash ribbons moving averages also trending upwards.
Market returns to a state of profit
Realized Price is the average cost basis of the entire market. It takes the average of UTXO values as they move to new addresses onchain.
It is a very useful tool for highlighting when the market is under stress. When $BTC price dips below Realized Price it tends to mark the major bear market lows…which we often discuss in this newsletter as being the best times to accumulate more bitcoin.
Having spent several months below Realized Price, albeit with some brief moves above, last week’s +20% move to the upside has resulted in price now sitting back above Realized Price.
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