Bitcoin Realized Price Sits At $54,000—Will BTC Revisit It This Cycle?

On-chain analytics firm CryptoQuant has pointed out how Bitcoin has tended to revisit or stay below the Realized Price in past bear markets. Currently, this level is located at $54,000.

In a new post on X, CryptoQuant has talked about what the Realized Price is telling us about Bitcoin right now. The “Realized Price” here refers to an on-chain indicator that keeps track of the cost basis or acquisition level of the average investor on the BTC network.

When the spot price of the asset is trading above this metric, it means the addresses as a whole are in a state of net unrealized profit. On the other hand, BTC’s value being below the indicator suggests an underwater status for the overall network.

Now, here is the chart shared by CryptoQuant that shows the trend in the Bitcoin Realized Price over the history of the cryptocurrency:

As displayed in the above graph, Bitcoin broke through the Realized Price at the end of the 2022 bear market and since then, the asset has maintained above this line. This suggests that investors have enjoyed net profits in this period.

Recently, the cryptocurrency has faced some notable bearish momentum, but so far, it has managed to stay some distance above the Realized Price. Currently, the metric is situated at $54,000.

From the chart, it’s visible that past bear markets generally saw Bitcoin spend time at or below this level. When the majority of the investors are in loss, selling pressure with the motive of profit-taking starts running out, so it may be why the asset historically found bottoms below the metric.

While the holders as a whole are still in the green, a significant segment of the userbase is already underwater at the current price levels. As the below chart shows, the Realized Price of the short-term holders has been floating some distance above the spot price recently.

The short-term holders refer to BTC investors who purchased their coins within the past 155 days, so their Realized Price tracks the average buying price of coins that moved over the last five months. With the spot price currently being under this level, it would appear that this group is in a state of loss. “Recent buyers are underwater, creating sell pressure on every bounce,” noted the analytics firm.

Strategy, the largest Bitcoin treasury company in the world, has also seen the asset drop under its cost basis with the recent bearish action. At present, the firm’s Realized Price is sitting around $75,600. “Right where the recent rally got rejected, the market is reacting to this level,” said CryptoQuant.

Bitcoin has continued to consolidate sideways recently as its price is trading around $68,400 right now.