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This indicator on the Bitcoin chain can suggest why the $24,750 price level is a significant resistance to the cryptocurrency.
Bitcoin adjusted realized price is now valued at approximately $24,750.
The relevant indicator here is the “realized price,” to understand which, the “realized cap” needs to be looked at first. The capitalization achieved is one of the two main capitalization models for Bitcoin (the other being the usual capitalization of the market).
In accordance with the ceiling achieved, the value of each item in the outstanding offer is the price at which it was last relocated (not the current BTC price, Market capitalization is assumed). This means that the model integrates each investor's base cost (purchase price) into the asset value.
However, if this metric is divided by the total number of pieces in circulation, one can obtain a kind of "realized price". The importance of this price is because it is the average holder's cost base in the marketplace.
The implication of this is that if the price of btc (normal) decreases below the actual price, the average investor makes a loss statement (and a profit statement the other way around).
While the realized cap somewhat filters out coins that haven’t moved in a long time from the valuation of bitcoin (as their cost basis will naturally be much lower than that of more recent coins), They still have a bearing on its value.
There is a trivial portion of the BTC supply that has simply been lost because of the basic wallet phrases being lost. It is likely that this offer will never come back on the market again, which means that it should no longer have any effect on the price.
To circumvent this problem, Glassnode has made the “adjusted realized price” metric, as the on-chain analytics firm explained in its newly published report. This indicator introduces a simple solution to the problem of lost parts: it does not include parts that have not been moved for over seven years.
Now here is a graph that shows the trend in the Bitcoin price realized adjusted in recent years:
Looks like the BTC price has been approaching this level recently | Source: GlassnodeAs shown in the graph above, the Bitcoin price already crossed above the price achieved earlier in the rally.
The adjusted realized price is currently $24,750, which is approximately the level at which the asset was recently disposed of. Interestingly, the April 2019 rally, which shares a few similarities to the latest rally, also saw a slowdown when it hit the metric’s line, as is visible in the chart.
Levels like this where a large number of investors may have their cost basis close to tend to provide resistance during bearish periods as it is a preferable exit point for such holders after having suffered unrealized losses during the bear plunge previously.
"Overbought", such as Santiment SaysLevels where a large number of investors can have their cost base close to offering resistance during downturns as This is a preferred exit point for these bearers after incurring losses not realized while diving the bear before.
BTC consolidates sideways | Source: BTCUSD on TradingView
