Bitcoin realized price and delta capitalization

Bitcoin Realized Price (or Realised Price)

It is the value of all the coins at the price that were bought divided by the amount of BTC that is in circulation, The Market Capitalization is the result of multiplying all the coins that there are by the value of the BTC today .
So the Realized Price tells us the purchase value of the BTCs 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 such as Bitcoin, most users do not want to sell below the value they bought, so when the price of BTC is close to the of the Realized Price, sales slow down and at the moment of the crossing, sales stop and buyers enter with force, raising the price of bitcoin.

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.

Learn more about Bitcoin Delta Capitalization

%d bloggers like this: