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.
Yesterday, the #Bitcoin market sold off to $25.4k, and within 6% of the Realized Price ($23,960).
The realized price represents the average cost basis of all $BTCand was last visited, only briefly, in March 2020.
Historically it has been a strong support for #Bitcoin† pic.twitter.com/x9PzPr6BOt
— glassnode (@glassnode) May 13, 2022
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:
“This 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!
We can further dissect the Accumulation Score into wallet cohorts to see breadth of participation.
What we see is that almost all wallet groups, from Shrimp to Whales added to their balance, returning 🟦 values on the breakdown metric.
Live Chart: https://t.co/AGAkF5CAkc pic.twitter.com/lhcUtzvCWA
— glassnode (@glassnode) May 13, 2022