Since the start of the new year, Bitcoin (BTC) price has seen some short-term gains, however, the flagship cryptocurrency’s market value remains below key support levels. BTC price has been struggling to stay above $17,000 for several weeks but failed to break the resistance and recently fell back below $16,900 for the first time in almost two months.
Bitcoin still not on the bottom
The fight doesn’t end here as Bitcoin can potentially fetch much lower prices in the future. Data from CryptoQuant suggests that the price has yet to bottom as many had expected. During positive crypto market cycles, the price usually stays higher than the realized price. On the other hand, when a bear market approaches its final phase of capitulation, the price falls below the realized price, causing widespread panic.
realized price is the measure of the supply-weighted average price of what all market participants paid for their coins. It can be interpreted as the on-chain support or resistance price and is calculated as the realized ceiling divided by the total coin supply.
Additionally, market participants are under a lot of stress during this period and hence sell their assets to avoid further losses and control their exposure to further crypto market changes. Looking now at previous cycles, the start of a bull market can be predicted by the BTC price exceeding the realized price. However, that has not happened yet as the price has failed to surpass a certain price point and recently shed with significant bearish momentum to the downside.
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Bitcoin (BTC) price stays bearish?
As a result, there is still room for Bitcoin and the end of the current bear market is not expected until the price surpasses the realized price, which currently stands at $19.7K. Until then, the negative trend is expected to continue.
As of today, Bitcoin (BTC) price is currently trading at $16,970. This represented a 0.82% gain on the day, as opposed to a 2.07% gain on the week, according to crypto market tracker CoinMarketCap.
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Pratik has been a crypto evangelist since 2016 and has been through almost everything crypto has to offer. Be it the ICO boom, the bear markets of 2018, the bitcoin halving to date – he has seen it all.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication assumes no responsibility for your personal financial loss.
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