Bitcoin Bulls Gear up for New Week, On-Chain Data Suggests BTC Price Hasn’t ‘Bottomed’ Yet

The Bitcoin bulls are fighting to push the price above the $17,000 level but are content with a few small, barely perceptible gains. During the weekend, Bitcoin bulls reached closer to the $17k threshold, and it recently dropped below the $16,900 level. 

Getting past the $16,900 price point will open the door to $17,000. On the other hand, if demand is slow to materialize, BTC may retrograde even more and settle at $16,600.

According to data from CryptoQuant, the price hasn’t yet bottomed out as many had expected. Price typically stays higher than the realized price during bullish crypto market cycles. In contrast, when a bear market is on the verge of capitulating completely, the price drops below the realized price, igniting a generalized panic.

Realized Price is a metric reflecting the average price that all market participants paid for their coins, weighted by the supply. It is determined as a realized cap divided by the total coin supply and can be seen as an on-chain support or resistance price.

“During this period, market participants are under much stress and distribute their assets to avoid additional losses and control their exposure to further market fluctuations.”

Will BTC Again Dip Below $16,700?

According to the Stock Flow Reversion of Bitcoin, according to Gigisulivan, a CryptoQuant researcher, during the current bear market, the value of the largest cryptocurrency may go below the $16,700 threshold.

After the publication of favorable Consumer Price Index (CPI) statistics, Gigisulivan predicted that BTC might try to trade in the $20,000–$22,000 price range. “Just a thought, considering 2023 could be worse than 2022 once we know what sort of recession we are getting.”

Yonsei dent, another CryptoQuant analyst, discovered that as Bitcoin’s long-term holders increased their coin distribution, unfavorable sentiment grew. The Support Adjusted Dormancy indicator for BTC has been on an upward trend since the middle of December, according to Yonsei dent.