Bitcoin Has Once Again Bounced Off This Support Line
As pointed out by an analyst in a CryptoQuant , if this line doesn’t break, then BTC should be able to continue its bullish momentum. The relevant indicator here is the “realized price,” which is a metric derived from a Bitcoin capitalization model called the realized cap.
The realized cap calculates the total value of the cryptocurrency by assuming that each individual coin in the circulating supply is worth the same as the price at which it was last moved (which is unlike the market cap, which just uses the current spot price for this purpose).The value of the metric seems to have been going up in recent days | Source:
The 1-3 months cohort is part of the “short-term holder” (STH) group, which is one of the two main divisions of the Bitcoin market. The STHs include all investors that have been holding onto their coins since less than 155 days ago.
As displayed in the above graph, the realized price of the 1-3 months group has been constantly going up recently. This trend naturally makes sense, as the price of the cryptocurrency has also been rising in the same period.Since the start of the rally this year, though, the pattern seems to have flipped, as the realized price of the 1-3 months cohort has been providing support to the asset.
It would appear that these investors are currently looking at their cost basis as a profitable buying opportunity since they probably believe that the price would go up in the near future. Right now, the realized price of this group is around $26,600, which is the level that Bitcoin bounced off from yesterday. As the line still seems to be holding as support, this segment of the STHs looks to have not lost their bullish conviction yet.BTC Price
At the time of writing, Bitcoin is trading around $27,300, down 1% in the last week.BTC hasn't moved much lately | Source: