About Bitcoin Realized Price
This concept is especially useful for analyzing the profitability of Bitcoin investors based on when they purchased their coins. The realized price is calculated by adding the value of all bitcoin purchase transactions and then dividing it by the total number of bitcoins purchased in that period. This provides a more realistic perspective of how investors have experienced price fluctuations over time.
Since the Bitcoin market price is very volatile and can experience large fluctuations in a short period, the realized price can be useful to better understand the behavior of investors in the long term and how they have been affected by market fluctuations. It can also provide information on support and resistance levels based on the prices at which investors have purchased your assets.
In short, the Bitcoin realized price is a metric that reflects the actual average cost at which investors have acquired their bitcoins, which can provide valuable insight into market psychology and behavior over time.
Description of metrics
BTC Realized Price (or Realised Price)
It is the value of all coins at the price they were purchased at divided by the amount of BTC in circulation.
Market Capitalization is the result of multiplying all the currencies there are by the value of BTC current.
So the realized price tells us the purchase value of the BTC and the market capitalization tells us how much they are worth now.
From the trader's point of view, the Realized Price shows us good support because in a bull market like Bitcoin, most users do not want to sell below the value they bought, so when the price of BTC is near the Realized Price, sales slow down and at the moment of the crossover, sales stop and buyers come in strongly, raising the price of bitcoin.
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Bitcoin Delta Capitalization
Delta Cap (or Bitcoin Delta Price) is a “hybrid” metric in that it is half fundamental and half technical calculated on the difference between two long-term Bitcoin moving averages.
DeltaCap = RealizedCap - AverageCap
Where Realized capitalization (RealizedCap) is the value of all coins at the price they were purchased, which approximates the value in USD paid for all bitcoins in circulation.
And Average Capitalization (AverageCap) is a cumulative simple moving average updated to date and gives us the true average of all market capitalization history.
The Bitcoin Delta Cap metric attempts to resolve the typical questions of where the bottom is in a bearish period.
And it is usually used to detect the lows within the bearish periods that usually coincide with the crossing between the lines of the delta capitalization and the price of BTC.
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Bitcoin SOPR
SOPR is a metric that indicates the aggregate profits and losses realized on a particular day. It is considered a reflection of market sentiment.
Both the absolute value of the indicator and the prevailing trend provide information on the behavior of market spending.
It is calculated by dividing the price you would have if you sold today against the price you had when you bought those bitcoins.
A value less than 1 indicates that current sellers are losing money and often causes a slowdown in sales, creating a support zone.
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NUPL (Net Unrealized Profit/Loss)
It indicates what bitcoin holders would gain or lose if they sold right now, so it is a good indicator of market sentiment.
It is calculated by dividing the unrealized gain/loss, that is, the outflow of unspent UTXOs, by the market capitalization.
Unrealized gains/losses are the subtraction of the price at which it was purchased from the value it now has in the market.
NUPL = (Market Capitalization - Realized Capitalization) / Market Capitalization
Historically, periods where this metric has been below 0 have been good times to buy BTC and when this indicator falls below 0.6 it has been a good time to sell.
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