Yesterday, bitcoin (BTC) dipped just as far back. The panic was complete and for a moment it seemed that we could go a lot deeper. But as read this morning in the bitcoin market update, the price made a strong bounce. In dates from on-chain data analysis company Glassnode are seeing some interesting developments after yesterday’s bounce.

Bitcoin ‘realized price’ almost reached

First, Glassnode mentions that yesterday’s crash reduced bitcoin to a low from $25,400. That is only 6% above the realized price, an indicator that shows the average cost basis per BTC. The last time the bitcoin price came this close to this indicator was in March 2020. Then bitcoin crashed due to the coronavirus outbreak.

It can also be seen that in 2018, at the end of the bear market at the time, traded close to the realized price. In both scenarios it was seen that bitcoin subsequently started an upward trend. But don’t celebrate too soon. Besides the fact that results achieved in the past are no guarantee for the future, it can also be seen that the current bitcoin price has not yet touched the realized price. In short, there is still room for further declines if we base ourselves on this indicator.

Bitcoin Accumulation Increased During Dip

Furthermore, Glassnode mentions the fact that the Bitcoin Accumulation Trend Score has tapped high values. As the price fell, this indicator rose to a value of between 0.7 and 0.9, which says the following:

β€œThis indicates that a large cross-section of the Bitcoin market has significantly added bitcoin to their portfolio. Combined with the realized price, this suggests that investors saw value.”

Glassnode adds that when we zoom in further on this score, it becomes clear that all sizes of wallets (from shrimps until whale) bitcoin to their balance sheets. So they bought the dip!


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