Bitcoin price has recently shown four crucial support levels as it battles potential declines below $50,000.

Key Highlights:

• Realized prices of Bitcoin can help create a long-term market floor.
• A new analysis has highlighted the aggregate deposit cost basis of Binance users as a safety measure.
• The current realized losses from Bitcoin stand at levels not seen since the bear market of 2022.

Focus on Binance Traders

An analysis by Burak Kesmeci from CryptoQuant identifies $58,700 as the next critical threshold for Bitcoin bulls. He noted, “Which 4 levels am I watching in Bitcoin? 4 key realized price levels — essential for tracking the long-term trend in my view.”

The ‘realized price’ refers to the cost basis tied to the Bitcoin supply. It determines the value at which Bitcoin was last transacted. Support and resistance levels often form around realized prices involving large groups of coins.

Kesmeci stated, “Bitcoin has been dropping ever since it lost the New Whales’ cost basis — a classic bear cycle signal.” Notably, newer Bitcoin whales have an average buy-in of $88,700, but current prices sit significantly lower. Older whales have the realized price at about $41,600, with the overall cost basis at $54,700.

As Kesmeci observes, there’s a close relationship between the existing price and crucial support levels, specifically the realized prices from Binance deposit addresses.

“The reason: once Bitcoin falls below New Whales’ cost basis, it historically tends to at least test the Realized Price. And the only support standing between here and there is 58.7K.”

Bitcoin Losses Mimicking 2022 Bear Market

Panic selling has diminished since Bitcoin rebounded from lows around $59,000 earlier this year. However, data from CryptoQuant highlights ongoing risks for Bitcoin holders. Currently, 46% of Bitcoin’s circulating supply is being held at a loss, the highest since the end of the 2022 bear market.

As explained by co-contributor Darkfost, “At its peak, on February 5, realized losses exceeded 30,000 BTC.” He further commented that while these losses don’t yet match those experienced during the last bear market, they still indicate a capitulation phase has begun.

Bitcoin realized price data. Source: CryptoQuant

Bitcoin realized profit and loss data. Source: Darkfost/X

This article does not provide financial advice. Conduct thorough research before making investment decisions.