After gathering at $ 123,000 at a new record, Bitcoin prices slowed down as sales were devastated. As always, this led to speculation that digital assets would have seen the top of the price range and announced the end of the bull market. However, using the realized price theory, it is possible that the rally has not ended, showing how much Bitcoin prices have always increased compared to the previous cycle height.
How to measure the previous price of Bitcoin cycle
Encryption analyst GERT VAN LAGEN has shared X (previous Twitter) to share an interesting historical trend that bitcoin prices have not yet reached the cycle peak. This trend is associated with the realization price of Cryptocurrency, and it is related to how much drainage is increasing compared to this realization price to display a new cycle peak.
Van Lagen explains that Bitcoin has always risen to multiple drains of prices before actually displaying a new cycle. In 2011, the price was eight times higher than the price realized before reaching the top of the market, and this trend will continue for the next 10 years.
If you deliver it quickly to 2013, Bitcoin prices will reinvest similar rally. This time, the price rose six times, reaching the new highest. Four years later, a similar trend reappeared in 2017.
Again, in 2021, Bitcoin prices showed that they always moved several times the realized price before the top. Despite the huge market collapse of Covid in 2020, Bitcoin was able to increase the realization price four times before it recorded $ 69,000 in 2021.
Given this trend, the BTC also follows the prices that have been realized before the start of the best, and shows that the price increase has decreased in each bull market. Therefore, BTC can see lower drainage compared to four times in 2021.
According to GlassNode’s data, Bitcoin currently costs $ 51,000. This means that the price has already doubled so far. However, according to the trend of the last few bull markets, BTC can carry out the price three times the realized price. In this case, Bitcoin is still very likely to reach $ 150,000. Also, if this realized price theory is held, it means that the bull market is not over and the cryptocurrency still has a runway.
DALL.E’s main image, TradingView.com chart
Editorial process focuses on providing thorough research, accurate and prejudice content. We support the strict sourcing standard and each page is diligent in the top technology experts and the seasoned editor’s team. This process ensures the integrity, relevance and value of the reader’s content.
