Another important indicator indicates the recovery of the Bitcoin market (BTC): The current price has recently doubled the “realized” price of the asset
Bitcoin price versus realized price. Source: Glassnode
What is the “realized” price of Bitcoin?
Bitcoin’s realized price is calculated by dividing the market capitalization achieved by the offer. The realized market capitalization is calculated by multiplying each transaction exit or UTXO that was not issued by the price that was valid at the last move. This metric should include the cost of the asset. Traditionally, The capitalization and the realized price were below the actual ones;; However, it turned around against Black Thursday (March 19).
Bitcoin unrealized net profit. Source: Glassnode
Is a return to normality a good sign?
The relationship returned to normal in the following months. From July 27th The actual price was almost twice the realized price. While a return to normality is always welcome, the downside is that most of the offer is currently in profit. As a result, holders may be tempted to earn some of the paper revenue they have accumulated.
According to the Glass Node classification The current phase could be classified as optimism towards belief or fear ready to give in to fear. A recent Bloomberg report indicated that the former is more likely, given that BItcoin is expected to exceed $ 12,000.