Indicator Overview

The indicator tracks a modified version of the Realised Price for Bitcoin (BTC). The standard Realised Price considers every coin's last on-chain movement, but the Active Realised Price metric specifically excludes UTXOs that have been dormant for a long period. This approach creates a Realised Price line that better reflects the average cost basis of the 'active' market participants. This metric is therefore more responsive to recent major market events and shifts in the active investor's psychological cost basis.

How To Use

The Active Realised Price line serves as a key indicator of the active market's aggregate financial stress. When the BTC market price approaches or falls below the Active Realised Price, it signals that the average active participant is holding at a loss. This typically marks a period of deep conviction re-accumulation by long-term holders. A breakout above this line confirms that the active market has returned to an overall profitable state, often acting as a reliable signal that the low of the market cycle has been established and an upward trend is beginning.