According to the most recent data, Bitcoin (BTC) is staging a repeat of its May price action.
As the dust settles on a 6% drop in BTC/USD, some argue that its ascension to $25,000 was never meant to last.
The Realized Price Has Returned to Haunt the Btc Chart
The latest snap losses for BTC price action have surprised some with their magnitude.
The largest cryptocurrency is now attempting to establish support near its realized price after falling from $23,800 to as low as $21,400 in a single hour.
At just under $22,000, realized price refers to the total of the last movement of the entire BTC supply.
Many market participants will be familiar with the setup, as realized price formed an initial support line during Bitcoin’s descent in May, immediately following the Terra LUNA blowout.
With history rhyming (at least on the chart), it’s unclear whether other recent points of interest will continue to play a role.
Among them is the 200-week moving average (MA), a hard-won support level in July that appears to have been lost in a single swoop.
The 50-day moving average, broken in late July, is now above the spot price of $22,260.
Active Addresses Are Not Capable of Supporting Breakout
Meanwhile, analysing network activity growth during the August run to more than $25,000 produced bearish conclusions for analyst Philip Swift.
The creator of analytics resource Look Into Bitcoin noted in a new tweet on the day that growth had not matched similar price appreciation phases this time.
“AASI (Active Address Sentiment Indicator) has indicated that the current price move has not been supported by a sufficient increase in active addresses on the Bitcoin network,” he concluded.