Bitcoin Retests Realized Price, Will Rally Be Saved?

Bitcoin recently retested its realized price, which has raised concerns about the future of the cryptocurrency’s rally. However, experts believe that the rally can still be saved, as Bitcoin’s fundamentals and market sentiment remain strong. Realized price is an important metric in determining the value of Bitcoin, as it takes into account the average price at which different groups of investors purchased the cryptocurrency. Despite the recent dip in prices, Bitcoin still holds great potential for growth, and investors remain optimistic about its long-term prospects. As such, it is expected that Bitcoin will continue to attract new investors in the coming months, thus leading to a rise in its price.

Bitcoin’s on-chain data is indicating that the asset’s price is retesting its realized price, which could help boost its value and restart the rally. According to a CryptoQuant analyst, if BTC can maintain its realized price of around $19,700, the bullish outlook will continue. Unlike the market cap, the realized cap bases each coin’s true value on the price at which it was last moved, helping mitigate the problem of dormant coins that can no longer influence the price. The realized price indicates the average holder’s cost basis in the Bitcoin market. The current decline in BTC is retesting the realized price and could serve as a test for the rally’s sustainability. If the realized price can act as support, this could help the price rebound. However, failure to maintain this level could suggest that the bear market is not yet over. At the time of writing, BTC is trading around $19,900, down 11% in the last week.

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