News Flash: Analysis of Realized Bitcoin Prices and Their Impact on the Market
- Realized Bitcoin price is a metric that shows the average price of all Bitcoin transactions in the past, reflecting the average cost to current Bitcoin holders.
- UXTO Age Bands divides these prices into groups based on the length of time Bitcoin has been held, allowing analysis of average costs and investor behavior.
2021 Bull Market Participants:
- The green trend represents 2-3 year old UXTO, indicating investors purchased at the end of the 2021 bull market at an average cost of $49,224.
- Breaking this level could mean a group of investors starting to profit and create selling pressure.
Support Levels for Short Term Investors:
- The purple trend represents 1-3 month old UXTO, indicating investors who purchased Bitcoin in the last 1-3 months at an average cost of $41,919.
- Holding this level is important for investors to limit their losses.
Conclusion and Expectations:
- On-chain data shows that $49,000 is an important resistance level for Bitcoin, the bull market needs to break this level to start.
- However, we can observe a different reaction from investors remaining from the 2021 bull market when this level is exceeded:
1. Selling Pressure: Some investors may sell to realize profits when reaching their cost basis, possibly causing a short-term correction.
2. FOMO: Other investors may start to spread the word and attract more investment, believing that Bitcoin will continue to rise, possibly causing further price increases.
- Surpassing $49,000 could lead to both upward and downward movements, the possibility of this level being a local top should not be ignored.
- It is important for investors to follow these levels closely and manage their investments wisely.