Definition ∞ Bitcoin Realized Price represents the average price at which all bitcoins currently in circulation were last moved on-chain. This metric calculates the value of each unspent transaction output (UTXO) at the time it was created. It serves as a macro-level indicator of the average cost basis for the entire Bitcoin supply. The Realized Price provides a less volatile valuation compared to the spot market price.
Context ∞ Analysts frequently reference Bitcoin Realized Price to gauge overall market sentiment and identify potential support or resistance levels. When the market price drops below the realized price, it suggests that the average holder is at a loss, historically marking periods of capitulation and potential market bottoms. Conversely, a significant premium above the realized price can signal overheating conditions.
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