While Bitcoin’s price may fluctuate, PlanB believes that its realized capitalisation has remained stable.
On Saturday, cryptocurrency markets fell by more than 2 percent, with BTC plunging by almost the same amount to begin the weekend.
Following an earlier low of $42,128, Bitcoin traded above its $42,000 support level throughout the bulk of Saturday’s session.
The world’s second-largest cryptocurrency, ETH, too was eventually submerged today, after attempting to break through the $3,200 mark.
Above the resistance levels of $45,000 and $48,000 however, there might be a significant positive movement. Furthermore, if the market takes a sharp swing downwards, then BTC is likely to fall below the $42,000 support level.
Bitcoin price can sink but there is a twist
Bitcoin’s realized capitalization is currently near its all-time high value of $466 billion, he noted. He predicted that the metric’s trajectory would lead to Bitcoin’s next all-time high price. He also estimates that the realized cap will be around $750 billion at $100k per Bitcoin.
The realized cap matic, for example, assesses the Bitcoin market based on the latest price at which every Bitcoin in circulation moved. This differs from market cap, which simply multiplies the total amount of Bitcoins in circulation by the current price.
This distinction means that the realized cap decreases the impact on the value model of coins that may be lost or in the hands of long-term holders. The fact that it is heading near the all-time high could signal that long-term investors are definitely driving market direction.
Plan B’s recent analysis comes after he stated that if the S2F model is still in effect, Bitcoin’s current price represents a 55 percent discount from what it should be.
At the time of writing BTC price is trading at $42,557.67 and it has declined by more than one percent.