Bitcoin Price Floor

Definition ∞ A Bitcoin price floor represents a theoretical or observed minimum price level below which Bitcoin is unlikely to trade for an extended period. This level is often derived from on-chain analytics, such as the aggregate cost basis of long-term holders, or from macroeconomic factors. It suggests a point where strong buying interest or fundamental value is perceived to exist. The price floor serves as a psychological and technical boundary for market participants.
Context ∞ The concept of a Bitcoin price floor is central to discussions about market stability and investor confidence in cryptocurrency news. Reports often highlight different models or metrics used to identify this floor, such as the Realized Price or miner cost of production. Debates frequently arise regarding the validity and predictive power of these models during bear markets or significant price corrections.