Bitcoin Drawdown Hits Fourth Worst in History: Realized Cap Down 18.9%
• Bitcoin (BTC) market cap drawdown has hit the fourth worst drawdown in history at 76.9%.
• Realized cap drawdown was the second worse at 18.9%.
• On-chain and macro data suggest that Bitcoin may be bottoming out.
Realized Cap Drawdown
Bitcoin (BTC) market cap drawdown has hit the fourth worst drawdown in BTC history at 76.9% — establishing a lower low. Meanwhile, realized cap drawdown was recorded as the second worse at 18.9%. Market capitalization (or network value) is defined as the product of the current supply by the current USD price, while realized cap values different parts of the supplies at different prices (instead of using the current daily close). It is computed by valuing each UTXO by the price when it was last moved.
On-Chain Data Suggests Bottom Is Near
Looking at the difference in drawdown from an all-time high (ATH) between market cap and realized cap, it appears that Bitcoin may be bottoming out as suggested by on-chain and macro data analysis. CryptoSlate analyzed on-chain and macro data to present both sides of this argument, with some analysts believing that Bitcoin is poised for a new low or if the bottom has been set at $15,500?
In conclusion, this recent bear market has seen record low levels for both realized and market capitalization draws downs for Bitcoin. On chain analysis suggests that we may be near a bottom for this trend however time will tell whether these levels will hold or not as more data becomes available over time.
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