BTC bulls aim to confirm $20,000 as support as fresh on-chain data begins to signal that the bottom might be in.
While Bitcoin price support may be psychological for some traders, the statistics behind BTC remaining over $20,000 for a week are strong indicators of price support or, in other words, a new bear market floor. Multiple Bitcoin data points might be able to establish a $20,000 support level.
Last week, Bitcoin reached a high of $20,961. However, it never sustained its upward momentum as the rally fizzled out, failing to break $21,000 support. As a result of the rally as well as the rejection, Glassnode, in its most recent report, analyzes whether or not Bitcoin is hammering out a bear market floor.
Realized price distribution
Bitcoin’s realized price charts the average cost buyers paid for their BTC holdings. If the price of Bitcoin goes below a user’s realized price, they are technically experiencing an unrealized loss. For visual effect, the UTXO Realized Price Distribution shows the percentage of supply distributed across the acquisition price.
The 2019 bear market shows that 30% of BTC’s total supply was concentrated within the realized price range. In April 2019, the price broke out above the realized price, signaling the start of a new bull market.
Source : cointelegraph.com/news/bitcoin-on-chain-data-flashes-early-signs-of-the-btc-bottom-being-in by Cointelegraph By Kyle White - November 01, 2022