Indicator Overview

The indicator tracks the Realised Price for Bitcoin (BTC). The Realised Price is an on-chain metric calculated by dividing the Realised Cap (the sum of the value of all coins at the time they last moved on-chain) by the current total coin supply. It represents the average cost basis of all bitcoins in existence. The line's colour changes based on its absolute value, shown against the actual BTC market price. When the market price is above the Realised Price, the market is in overall profit.

How To Use

The Realised Price functions as a dynamic, long-term support and resistance level that effectively signals market cycle bottoms. Historically, when the BTC market price trades below the Realised Price, it suggests the average investor is holding coins at a loss, a condition which has reliably marked a macro market bottom or capitulation phase in previous cycles. A strong bullish signal is generated when the market price definitively reclaims the Realised Price after trading below it for a period. This reclaiming action often signifies the conclusion of the bear market and the start of a new accumulation phase.