Summer rally signals increased in Bitcoin.
Bitcoin has seen impressive growth in 2023, reaching a high of $31,000 on April 14. However, the price of BTC has been declining and has been trading within a specific range since then.
Currently, investors are eagerly anticipating Bitcoin’s price to surpass $30,000 once again and reach new all-time highs. Analysts have been assessing the current value of BTC amidst this anticipation.
Based on the information from Coindesk and Glassnode, it is reported that the realized price of Bitcoin is expected to surpass the average purchase price of long-term investors.
Analysts have expressed that this indicates a potential extended period of upward movement, suggesting that the rally observed in BTC since the start of 2023 could be the initial step towards further growth.
Looking back at historical trends, when the realized price of BTC surpasses the average purchase price of long-term investors, it is commonly seen as a sign that bear markets are ending and significant price rallies are about to commence.
Blockware Solution analysts made the following statements in their report:
When we compare the average purchase price of long-term Bitcoin investors with the current price of Bitcoin, we observe that these two prices are getting closer to a point where they intersect. This particular point has historically indicated the end of bear markets in the past.
In simpler terms, the realized price of Bitcoin is getting ready to surpass the average purchase price of long-term investors, which is considered a positive sign for future price trends.
Analysts have noted that in the past, the intersection between these two prices occurred in June 2019, May 2016, and September 2012. After each of these dates, significant bull runs in Bitcoin’s price were observed.
Bitcoin continues to trade at $ 27,040 at the time of writing.
This information is for general knowledge only and should not be considered as advice for investing or making financial decisions.