Note: Bitcoin Price Has Surpassed the “Most Critical Level Determining the Market Trend”—But There Is One More Condition

Cryptocurrency analytics company CryptoQuant shared a noteworthy assessment of recent Bitcoin price movements. According to the company’s analysis, Bitcoin has regained a critically important level for the market.

According to CryptoQuant data, Bitcoin has been closing above its “adjusted realized price” (excluding supply that has been dormant for 7 years or more) for the past three days. This level is currently around $72,300. This metric represents the average cost of the supply actively in circulation and is considered the “break-even” point for a broad investor base.

The analysis adds that Bitcoin breaking above this level is a significant technical development, but a stronger trend confirmation requires a weekly close above this level as well. Otherwise, a rejection from this level is a possibility in the short term.

According to CryptoQuant, the real strong bullish signal would be if the price breaks above this average cost and remains within the standard deviation band. In such a scenario, more investors would profit, and the tendency of market participants to hold onto their positions could strengthen.

Looking at past bear markets, this level appears to be a critical turning point. Periods when Bitcoin fell below this average cost initiated long-term bear trends, while its return above it generally signaled the start of a new uptrend. It was noted that this level acted as support during pullbacks (except for the COVID-19 crash).

*This is not investment advice.