- Renowned analyst says there could be ‘interesting times’ ahead for Bitcoin.
- PlanB considered Bitcoin’s 5-month Realized Price before predicting an interesting future.
- Realized Price reveals the average cost basis at which all bitcoins in circulation were purchased.
Renowned Bitcoin analyst, known as PlanB on X (formerly Twitter), says there could be ‘interesting times’ ahead for Bitcoin. PlanB made the statement after considering how the Bitcoin Realized Price, a critical indicator, has developed recently.
PlanB posted a screenshot showing that Bitcoin’s five-month Realized Price is now above the two-year Realized Price. Using historical data, PlanB thinks the current setup will remain for over two years, signifying a prolonged bullish trend for Bitcoin.
Bitcoin Realized Price is plotted by calculating the sum of all bitcoins at the price they were bought and dividing that by the number of bitcoins in circulation. It provides information on the average cost basis at which all bitcoins in circulation were purchased.
Traders use the Bitcoin Realized Price indicator to gauge the economic state of the overall Bitcoin market. PlanB’s post shows that the Bitcoin market price is above the Realized Price. That entails that participants in the Bitcoin market are in profit from an overall perspective.
Bitcoin traders appear to be relaxed in such situations, and the market is usually considered healthy, unlike in the reverse situation, when the market price falls below the Realized Price. When that happens, most Bitcoin traders will be at a loss, and the market will be under Fear, Uncertainty, and Doubt (FUD).
Another crucial factor behind PlanB’s exposition is that most open Bitcoin positions would be far from their stop-losses when current prices are above the Realized Price. That instills more confidence among Bitcoin traders, keeping them bullish for longer periods.
Bitcoin retested the $30,000 price level after trading below it for the past seven days, per TradingView data. It is the second time Bitcoin price has attempted such a rally since falling below that psychological level on July 24. The flagship crypto traded at $29,775 at the time of writing, with traders anticipating the release of the July 2023 CPI data in the next 24 hours.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
, says there could be ‘interesting times’ ahead for Bitcoin. Read more.){kind=link}