Bitcoin’s Short-Term Whales Stand Firm as Digital Currency Bounces Back
Bitcoin has recently seen a significant bounce back, surpassing the $66,000 threshold once again. This resurgence occurred following a period where the cryptocurrency was close to the Realized Price of the Bitcoin short-term whales during a transient slump. The term ‘Realized Price’ denotes the average purchase cost of an investor in the Bitcoin market. When Bitcoin’s spot price trades above this level, it suggests that the overall investor market is realizing unrealized gains. Conversely, if it falls below this level, it implies the market is experiencing losses. This article focuses on the behaviour of Bitcoin short-term whales, defined as investors who have purchased Bitcoins within the preceding 155 days and hold in excess of 1,000 BTC. The Realized Price for this group of investors reflects the mean cost of purchases over the last five months. Recent data indicates that the Realized Price of these Bitcoin short-term whales has soared in line with Bitcoin’s sharp rally this year. This is attributed to new investors entering the market and purchasing at higher prices. As older investors withdraw from this group and transition into the long-term holder cohort, the average price escalates further. The recent market correction saw Bitcoin come close to retesting this Realized Price, a situation that has historically triggered market responses and buying during bullish periods. This may explain why Bitcoin managed to bounce back near the $60,700 mark. With this latest resurgence, Bitcoin has rallied back towards the $66,500 level.
Not financial advice. Always be safe and secure when dealing with cryptocurrency. Never send anyone your private key. Always Do Your Own Research..DYOR..DYOR..DYOR!
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