To determine the long-term trend, it's essential to monitor four key levels of realized price for Bitcoin investors. This was stated by CryptoQuant analyst Burak Keshmec.
According to the expert, crossing these levels could indicate a potential move of the asset towards a deeper bottom. He referred to this as a "roadmap."
Keshmec identified the following levels:
- Overall realized price (RP) of BTC — $54,700;
- RP of long-term whales — $41,600;
- RP of new whales — $88,700;
- RP of Binance user deposit addresses — $58,700.
“Bitcoin has been declining since it fell below the entry point of new whales — a classic signal of a bearish cycle. Next, I will be watching two key support levels — [the first and fourth on the list],” the analyst added.
The CryptoQuant researcher noted that after the first cryptocurrency drops below the "newbies" baseline, its price historically tests the realized price. In such cases, the only support level remains at $58,700.
“The question is whether these two critical values will hold as support? Or will we feel deeper, bone-chilling waters?” Keshmec concluded.
It’s worth mentioning that another CryptoQuant analyst, Ignacio Moreno de Vicente, pointed out that the short-term Sharpe ratio for Bitcoin has dropped to a level that historically precedes price lows.