CoinWorld reported that BTC recorded an ATH with its latest price trend. With the continued rise of the coin’s realized cap, another ATH might be on the horizon.
The Bitcoin [BTC] market is no stranger to price fluctuations, with investors constantly observing indicators that signal potential changes. Data concerning 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 for predicting the direction of Bitcoin’s price.
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, reaching an all-time high. The rise in realized cap indicates the growing value of cryptocurrencies held by long-term investors. This is a positive signal of market stability and investor confidence. The recent increase in Bitcoin’s realized cap suggests more capital is flowing into Bitcoin, despite price fluctuations.
For Bitcoin, an increase in realized cap usually indicates less selling pressure from holders. Analysis of the realized cap suggests that over the years, when this metric hits historical highs, a price drop usually follows, succeeded by another all-time high for the coin.
As BTC’s realized cap reaches new highs, it indicates increased confidence among investors 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. With the growth of realized cap, it suggests more investors are holding the asset rather than selling. This move could support BTC’s current price levels and lay the groundwork for further price increases.
Technical indicators like 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, contributing to sustained price support at higher levels.
Key levels indicating BTC’s next move
Data analysis from Hyblock highlights that Bitcoin is trading within a narrow range between the previous day’s high (pdHigh) and the combination level of the previous day’s open and equilibrium (pdOpen+pdEQ). Market dynamics indicate there are clear 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, fueling upward momentum.
On the support side, Bitcoin found strength near the pdOpen+pdEQ area, offering a potential entry point for bullish traders. Long liquidation levels below pdLow suggest an additional layer of support that can prevent a significant drop, especially with increased buying interest.
This consolidation reflects a market in a wait-and-see mode. This is consistent with the broader trend of the rising realized cap of Bitcoin. It underscores the steadfast confidence of long-term holders.
What will happen in the coming months?
Historically, in BTC’s upward trends, substantial 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 could rebound again, potentially reaching or even surpassing recent highs. Moreover, Average True Range (ATR) values indicate controlled volatility, 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’s price, as long-term holders have little intention of selling. If historical patterns hold, this trend could serve as a springboard for Bitcoin to achieve new price milestones.