Bitcoin May Drop Again, But There's A Catch

Will the bearish trend in the larger crypto market persist as long as Bitcoin's (BTC) price fails to surpass the realised price of $19.7K?

Although there have been some brief price increases for Bitcoin (BTC) since the start of the year, the market capitalization of the leading cryptocurrency has remained below key support levels. Since several weeks ago, the BTC price has fought to stay above $17,000. However, it has been unable to overcome this resistance, and lately dipped below the $ 16,900 level for the first time in almost two months.

Bitcoin Has Yet to Bottom

The fight is not over yet, as Bitcoin may eventually be able to trade for considerably less money. Data from the research indicates that, contrary to popular belief, the price has not yet reached its low point. Price typically stays higher than realised price during bullish crypto market cycles. In contrast, when a bear market is on the verge of capitulating completely, the price drops below the realised price, igniting a generalised panic.

Realized Price is a metric reflecting the average price that all market participants paid for their coins, weighted by the supply. It is determined as realised cap divided by the total coin supply and can be seen as an on-chain support or resistance price.

Price of Bitcoin (BTC)

Market participants are also under a lot of stress during this time, which leads them to sell off their assets in an effort to stop further losses and limit their exposure to future changes in the cryptocurrency market. According to past cycles, the BTC price above the realised price signals the start of a bull market. This has not yet happened, though, since the price has been unable to rise over a particular level and lately saw strong negative momentum rejection to the downside.

Price of Bitcoin (BTC) To Remain Bearish?

Therefore, there is still potential for Bitcoin to decline, and the current bear market won't be considered to be over until the price exceeds the realised price, which is currently $19.7K. The downward trend is anticipated to continue until then.

At the time of writing, the price of one bitcoin (BTC) is $16,920. According to the cryptocurrency market tracker CoinGabbar, this is an increase of 0.71% for the day as opposed to a gain of 2.01% for the week.