The bitcoin price is facing a roller coaster ride nowadays as it is subjected to extreme volatility, causing huge price variations. Amid the possibility of rising beyond $28,200 surfaced for a while, the probability of undergoing a massive plunge below $26,000 has emerged. The latest pullback from $28,500 has eventually squashed the bullish hopes for the star crypto but also carries some chances of a bullish reversal.
The realized price of Bitcoin is calculated by dividing the realized market capitalization by the circulating supply. This indicator is used to determine whether a trend follows a bull market or a bear market by comparing the current price with the realized price. Presently, the realized price is greater than the actual price, which suggests the resurgence of a fresh bearish market.
However, if the price closes and sustains above the realized price of $28,233, a popular analyst, Ali, believes the bull market may be reignited.
Currently, the warm supply, which comprises less active components of the short-term holder supply, right through to the start of the long-term holder cohort, is going negative. Historically, whenever these levels have dropped, the BTC price has plunged notably. However, being at a marginal loss, the probabilities of a recovery are also somewhat high.
Previously, the analyst had mentioned the growing amount of whale accumulation. Referring to the data from Glassnode, Ali pointed towards a notable increase as they purchased 20,000 BTC since the beginning of October, which is roughly worth $550 million. A rise in whale accumulation usually refers to an incoming change in the market trend that is smelted by the whales.
Therefore, considering this as one of the bullish indicators, one can expect the beginning of a minor bull run if the Bitcoin (BTC) price sustains above $28,500 in the longer run.
Source: https://coinpedia.org/price-analysis/bitcoin-bull-run-could-begin-only-if-the-btc-price-sustains-above-these-levels/