The previous trend of bitcoin real/achieved price ratio could be forming a pattern which could signal a potential bottom for the crypto at $17k.
The bitcoin actual/received value ratio is currently 0.8. is the value of
As one analyst in a Cryptoquant post pointed out, the historical data for this BTC ratio could have interesting implications for the current market.
Realized cap is a capitalization model for bitcoin that multiplies each coin in the circulating supply by the price at which the coin was last moved and takes the sum of all values. This is different from normal market cap, where the entire supply is multiplied by the current price of BTC to get the capitalization.
Now, from this actual limit, an “achieved value” can also be obtained by dividing the metric with the total amount of coins in circulation.
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Therefore, the “real/realized price ratio” is an indicator that measures the ratio between the normal price of BTC and this new real price.
Here is a chart that shows the trend in this bitcoin ratio over the years:
Looks like the actual price is lesser than the realized one at the moment | Source: CryptoQuant
In the graph above, volume highlights the value of major bottoms and the actual/achieved price ratio during previous bitcoin cycles at which they have occurred.
Looking at the chart, it appears that the value of the indicator was around 0.6 during the bottom of 2015. And at the bottom of 2018 it was around 0.67.
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Currently, the value of the metric is 0.8, which means that the price of the crypto is about 80% of the actual value right now.
If there is a pattern here with the real/achieved price ratio, this time the bottom may also form at a price 0.07 higher than last time.
This would keep the ratio at around 0.74, which means that a further drop to $17k would be required before Bitcoin could reach this “bottom” price.
Naturally, this would only happen if such a pattern actually exists here. Another indicator, the Delta Capitalization Model, suggests that $15k could be a potential lower limit for bitcoin bottom.
btc price
At the time of writing, bitcoin price is floating around $19.2k, down 10% over the past seven days. In the past month, crypto has lost 35% in value.
The chart below shows the coin’s price trend over the past five days.
The value of the crypto seems to have been going down over the last couple of days | Source: BTCUSD on TradingView
Featured image from Michael Förtsch on Unsplash.com, charts from TradingView.com, CryptoQuant.com