Bitcoin has been consolidating between the realized price and the balanced price for three months so far, here’s why this can suggest the bear market may still have some ways to go before it concludes. Bitcoin Is Currently Below, But Near, The $21.1k Realized Price According to the latest weekly report from Glassnode, the realized and the balanced price models are suitable for approximating the bottom formation range for BTC. The “realized price” is a Bitcoin value model based on the idea of realized cap. In simple terms, what it represents is the cost-basis of the average holder in the market. This means that whenever the true BTC price is trading below this metric, the market as a whole enters into a state of loss. Another model for Bitcoin is the “balanced price,” which is calculated by taking the difference between the realized price and the transferred price. The former of the two is, as explained before, the mean cost-basis, or the price the average investor “paid” for their coins. The latter model, the new “transferred price,” signifies just the opposite. It’s based on the price that investors have been selling their coins at, and thus represents the price at which they “spent” their BTC. Related Reading: Trick Or Treat For Bitcoin On Halloween Night? | BTCUSD Analysis October 31, 2022 Because of this fact, the report explains that the balanced...
