Українська
Русский
English
BTC approaches a turning point as realized price converges with market price
- Bitcoin is showing signs of a bear market: low volume and weak investor sentiment.
- $BTC is trading above its realized price, signaling proximity to previous cycle bottoms.
- The convergence of price and realized value has historically triggered rallies.
Bitcoin is entering a decisive phase that could set the tone for the next bullish cycle. The realized price and profit/loss metrics highlight its current position slightly above the cycle lows observed in previous market downturns.
A typical bear market
According to analyst Crypto Dan, the current Bitcoin situation clearly reflects low volume and weak sentiment in the crypto market. The current state suggests that many participants have left the market, and overall interest has significantly declined. Historical patterns point to a typical bear market, providing a clear signal for analysts studying the crypto market.
According to CryptoQuant data, Bitcoin’s realized price is $54,374, while the actual market price is around $71,000. However, the most important factor is the convergence of these two metrics, which has significant historical implications. On-chain data shows that each time these metrics converged, Bitcoin’s price responded with a strong rally.
Source: CryptoQuant
Time to buy Bitcoin
In addition to the ongoing convergence between Bitcoin and its realized price, the profit/loss indicator is behaving similarly, showing patterns associated with historically bullish outcomes. These signals point to a potential reversal for $BTC and further upside. The analyst believes these signals are sufficient for a timely entry into the Bitcoin market.
Dan notes that a bear market is a time to prepare for the next bullish cycle, especially when such clear signals are present. He emphasized that historical patterns show a striking difference between those who enter the market after a rally begins and those who quietly prepare during the bear market.
It is worth noting that Bitcoin has already shown early signs of recovery after last year’s prolonged bearish trend. The cryptocurrency broke above the $70,000 resistance level, which had held for about six weeks, followed by a classic uptrend with higher highs and higher lows on the daily chart, according to TradingView data.
See also: "Investors withdrew a record amount of Ethereum ahead of a possible rise"
