Bitcoin realized profits are back in the green zone after an epic 37% rally this year. Will Bitcoin proceed to the next resistance level, or was it a bull trap?
Following a nearly three-week rally, Bitcoin on-chain metrics appear to be improving. Furthermore, while price levels have returned to levels above a number of key technical indicators, it may be too early to declare a full bull market reversal.
On January 27, renowned analyst ‘PlanB’ reported that Bitcoin realized return had returned to positive territory. He observed that sellers are now taking profits rather than cutting losses.
The amount of actual gains made on the value of an asset over a specific time period is referred to as the realized return.
Bitcoin is now trading comfortably above its realized price. This is a measure of the value of all BTC in circulation at the last price change. It can also be regarded as a rough estimate of what the entire market paid for their coins.
According to Woo Charts, the current realized price is $19,785. BTC surpassed this barrier on January 13 and has remained above it ever since.
The 200-week moving average is the next goal it must achieve. This metric has traditionally been used to predict the bottom of a bear market. The 200w MA is currently at $24,685, the next target for confirming the uptrend.
Furthermore, market sentiment has improved, with the BTC fear and greed index moving into ‘greed’ territory. It is the highest level reached by the index since late March 2022.
Charles Edwards, the founder of Capriole Fund, commented on the FTX collapse and how Bitcoin has recovered yet again:
“It’s like it never happened. Many thought it was the end of our industry, but Bitcoin always comes back from the purging of bad actors stronger than ever. Nothing will stop the relentless adoption rate of this industry.”
BTC was trading at $22,797 at the time of publication, down 1.7% on the day. For nearly a week, the asset has been consolidating at the $23,000 level.
Its next target price is $24,400, a level not seen since mid-August 2022. If this current resistance zone can be broken, there won’t be much standing in the way of $30,000.
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