CoinWorld reports:
BTC has recorded an ATH with its latest price trend.
With the continued rise in the coin’s realized cap, another ATH may be on the horizon.
The Bitcoin [BTC] market is no stranger to price fluctuations, with investors constantly observing indicators that herald potential changes. Data on the coin’s realized cap adds weight to the bullish narrative.
Recently, Bitcoin’s realized cap has risen significantly, a shift that could be crucial in predicting Bitcoin’s price direction.
What does the rise in realized cap mean for BTC’s price trend?
Bitcoin achieves a record market cap
The realized cap is an alternative to market cap, accounting for the acquisition cost of each Bitcoin rather than its current market value. It reflects the sentiment of holders who acquired BTC at different price points.
Metric analysis from Glassnode shows it has risen to approximately $663 billion, the highest level in history.
The rise in realized cap indicates that the value of cryptocurrency held by long-term investors is growing. This is a positive signal of market stability and investor confidence. The recent increase in Bitcoin’s realized cap suggests that more capital is flowing into Bitcoin even with price fluctuations.
For Bitcoin, an increase in realized cap typically indicates less selling pressure from holders. Analysis of the realized cap suggests that over the years, when this metric reaches historical highs, it is often followed by a price pullback and then another all-time high for the coin.
As BTC’s realized cap reaches new heights, it suggests increased investor confidence in the future price growth of the cryptocurrency.
This could reduce the supply available for trading.
Impact on BTC price trends;
The rise in realized cap could impact Bitcoin’s price. As the realized cap grows, it indicates that more investors are holding the asset rather than selling.
This move may support BTC’s current price levels and lay the foundation for further price increases.
Technical indicators such as moving averages on the BTC price chart confirm this view. At the time of writing, BTC’s movement is above its 50-day and 200-day moving averages (MA), showing bullish momentum.
If the realized cap continues to grow, it may encourage more investors to buy and hold, helping to sustain prices at higher levels.
Key levels indicate BTC’s next move
Hyblock’s data analysis points out that Bitcoin is trading in a narrow range between the previous day’s high (pdHigh) and the combined levels of the previous day’s open and equilibrium (pdOpen+pdEQ). Market dynamics suggest significant resistance and support zones at these levels.
According to the latest data, BTC faces resistance near pdHigh, with a series of short liquidation levels indicating strong selling pressure.
If Bitcoin breaks through this level, it could trigger short-term liquidations, driving upward momentum.
In terms of support, Bitcoin has found strength near the pdOpen+pdEQ area, offering a potential entry point for bullish traders. Long liquidation levels below pdLow indicate an additional layer of support that can prevent a steep decline, particularly with increased buying interest.
This consolidation reflects a market in a wait-and-see state. This aligns with the broader trend of rising Bitcoin realized cap, highlighting the steadfast confidence of long-term holders.
What will happen in the coming months?
Historically, in BTC uptrends, significant price increases are often accompanied by a rise in realized cap. This is because investor sentiment remains strong, and selling is limited.
If this trend continues, Bitcoin may rally again, potentially reaching or even surpassing recent highs. Moreover, Average True Range (ATR) values indicate that volatility is manageable, providing a stable environment for BTC’s continued growth.
– Read Bitcoin (BTC) Price Prediction 2024-25
The rise in realized cap suggests a solid foundation for Bitcoin prices, as long-term holders have little intent to sell.
If historical patterns hold, this trend could serve as a springboard for Bitcoin to achieve new price milestones.
