Will Bitcoin Become Great Again?
Many traders have diverted their attention to altcoins such as Dogecoin, DeFI protocol tokens, and Cardano due to their recent sharp gains. Some traders have declared it "alt-season" as many lesser -known cryptocurrency pump seemingly at random. It is completely possible that the revitalized interest in crypto trading may awaken the seemingly dormant Bitcoin.
Bullish Signs for Bitcoin?
Earlier today Glassnode have published an interesting metric on the orange coin. On their Twitter they revealed that Bitcoin's realized price has reached a 5-month high.
Back on the 26th of February, Bitcoin's price was slightly higher than currently with a price of $9500 but the difference was with trader sentiment. Many traders were anticipating the upcoming halving and were feeling very positive about the asset.
Realized Price - What It Means & Why it Matters
Essentially a Realized Price is the Realized Cap divided by the supply. Now, the Realized Cap is the value of coins in circulation at the price when they last moved. So in layman's terms, the Realized Cap is what the entire market paid for their coins and if that is divided by the supply you end up with a realized price.
This can be interpreted in different ways. It is either a moderately bullish sign that new buyers are entering the market or it could signify a local top.
While it seems less likely, if it is a local top, Bitcoin's price could decline and prematurely end altseason. Should Bitcoin grow, that might extend to alts and make them even more volatile.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado