Bitcoin Reaches Bear Market Low: Can It Reclaim $19,900 Realized Price?

• Bitcoin’s realized price is currently valued at around $19,900 according to CryptoQuant’s year-end dashboard release.
• Bitcoin’s normal price has been below the realized price for a while now, historically spending very little time in this region.
• To understand the “realized price,” the “realized cap” must be looked at first, which prices each token at the same price it was last moved.

Bitcoin has recently been trading below its realized price for 163 days in this bear market, a situation that has only been seen during the worst phases of a bear market. To understand what the “realized price” is, it is important to first look at the “realized cap,” which is a capitalization model for Bitcoin that aims to provide its true value. The realized cap prices each token at the same price it was last moved, rather than the current market price. For example, if 1 BTC was bought at $20,000, but the market price has now changed to $16,000, the market cap will consider it valued at $16,000 whereas the realized cap will say its true value is $20,000.

When the total realized cap of Bitcoin is divided by the total number of coins in circulation, the “realized price” is obtained. This price signifies the cost-basis of the average coin in the market (that is, the price at which investors acquired the average coin at). According to CryptoQuant’s year-end dashboard release, the bear market would be over if BTC reclaims the realized price of approximately $19,900.

A chart that charts the trend in the BTC realized price over the entire history of the asset reveals that Bitcoin has spent very little time below this metric. Generally, only the worst phases of a bear market pull the coin below this level, and this is what is currently happening. This means that the current bear market is one of the longest and most difficult ones that we have seen in the crypto market.

It is worth noting that the realized price is an important metric to watch when trying to understand the full picture of the cryptocurrency market. It gives a more accurate representation of the true value of Bitcoin, as it takes into account the price at which tokens were last moved and not the current market price. This can be useful when trying to determine how close we are to the end of the current bear market, as the bear market would be over if Bitcoin reclaims the realized price of approximately $19,900.