Bitcoin market participants remain uncertain about the continuation of the bullish trend, with speculation revolving around whether higher prices are imminent or if the rally has concluded. A critical on-chain metric providing insight into this behavior is the realized price UTXO age bands, particularly for the 1-3 month (short-term) cohort.
The realized price for this cohort acts as a dynamic threshold, reflecting the average price at which these recent buyers acquired their holdings. When Bitcoin's price sustains above this realized price, it signals growing bullish momentum, indicating that new buyers are confident enough to hold despite elevated levels. On the contrary, a price drop below this threshold suggests a heightened risk of a sell-off, as these participants enter loss territory and may resort to panic selling, increasing downward pressure on the market.
Currently, the realized price of the 1-3 month cohort resides at the $81K region, marking it as a critical support zone. This level is viewed as the primary defense line for buyers in the long-term outlook, with its ability to hold likely determining the broader market's direction.
Written by ShayanBTC
