It seems that the pathetic run of the Bitcoin industry will last longer than expected. Bitcoin investors know that the Bitcoin industry has been going through a rough patch. However, in the recent past, the Bitcoin graph crossed the $25,000 mark briefly. However, this positive movement of the graph experienced a bearish rejection from the investors. This was primarily to their past experience of a trend reversal. In fact, this bearish rejection ultimately led to rapid liquidation as the Bitcoin graph dropped below the $22,000 mark.
However, in spite of this downward trend, Bitcoin enthusiasts have expressed their hope of a positive turnaround. In fact, the CEO of Bitcoin recently sounded highly positive when he claimed that Bitcoin is here to stay. However, the recent trend of the market tells a reverse story. Recent on-chain data shows that the price of Bitcoin has declined further below the realized rate. Therefore, this seems to suggest that the bear market is not yet over for Bitcoin. If you wish to know more about this recent Bitcoin trend, then this article is the perfect stop for you. Keep reading this article to know more about the extended bear market of Bitcoin.
The Rise And Fall Of Bitcoin Price
Recently, an analyst pointed out in a post on CryptoQuant that recently the BTC price has again entered the bear accumulation zone. In fact, the capitalization of Bitcoin is calculated on the “realised cap” model. This model calculated the capitalisation by multiplying each coin with the price it was last moved at. After that, the model takes a sum for the total supply. However, we should not confuse this with a normal market cap. In fact, much unlike the “realised cap”, in a normal market cap, the total number of coins in circulation is weighted against the present price of BTC.
We can derive a “realised price” from the realised cap. In order to do that we have to simply divide the cap by the total amount of BTC currently in circulation. We can consider this realised price thus obtained, as a break-even mark for the average investor. In fact, a graph published on the CryptoQuant shows that due to a recent plunge in the value of crypto, the price of Bitcoin has dropped below the realised price. Previous records state that whenever the Bitcoin price has dropped below the realised price, the market has entered the bottom state of a bear market.
Moreover, in such cases, the realised price line also acts as a resistance zone, which Bitcoin had escaped in the past. In fact, this very fact made some believe that the bear market is approaching its end. However, the decent drop in the BTC market has taken Bitcoin back to that region. In fact, the CryptoQuant post also states that this zone below the realised price has already served as an excellent accumulation zone in the past.
Concluding Lines
That is all that constructs the recent update of the Bitcoin industry. However, it remains to be seen, how the Bitcoin market behaves in this situation.
Also read: The Founder Of Crypto Unicorns Talks About The Sustainability
