The realized price represents the average expected purchase price of Bitcoin by market participants, and its movement is a key indicator in assessing the overall direction of the market.
As seen with the red arrows, when the realized price reaches a turning point and the trend reverses, a downtrend begins, or a sharp price crash occurs. However, the current situation is completely different. As shown in the yellow section, the realized price is still rising, which is a strong signal that the cryptocurrency market is still in an uptrend.
The reason the realized price is rising is that more and more market participants are purchasing Bitcoin at higher prices. In particular, institutions like Strategy and others are purchasing large amounts of Bitcoin through vehicles like spot ETFs, causing an influx of capital that continues to drive the realized price higher.
Therefore, the ongoing increase in the realized price is evidence that Bitcoin is still in an uptrend within its current cycle.
Written by Crypto Dan
