Realized Price Analysis

Definition ∞ Realized Price Analysis is an on-chain methodology that calculates the average price at which all bitcoins currently in circulation were last moved on the blockchain. This metric provides a cost basis for the entire market. It helps identify periods when the market as a whole is in profit or loss. This analysis offers a macro view of investor sentiment.
Context ∞ Realized price analysis is a fundamental tool for understanding long-term market cycles and identifying potential support or resistance levels for Bitcoin. When the market price falls below the realized price, it often indicates a significant accumulation opportunity. This analytical framework provides objective insights into the aggregate financial state of the Bitcoin network.