Bitcoin News Today: Bitcoin Investors Turn to Realized Price Strategy for Disciplined Entry Points

A new Bitcoin buying strategy is drawing attention among investors seeking disciplined entry points, particularly through the use of realized price data. This method, promoted by on-chain analyst @Fundingvest, leverages the 1-week to 1-month realized price averages as a guide for purchasing Bitcoin. The core idea is to buy when the market price drops below these realized price levels, which often indicates short-term holders are in loss positions, potentially increasing sell pressure and creating favorable accumulation opportunities [1].

Realized price differs from the current market price in that it reflects the average cost at which Bitcoin has been transacted or moved within a given timeframe. When Bitcoin’s price falls below these averages, it suggests that many short-term investors are underwater, which can trigger panic selling. While this may lead to further price declines in the short term, it also creates strategic buying zones for long-term investors [1].

The strategy is rooted in behavioral market analysis. When the price dips below the 1-week to 1-month realized price range, it typically signals that weak hands are exiting the market, offering lower entry points for those with a long-term investment horizon. Historical trends indicate that buying during such periods can yield substantial returns once market sentiment stabilizes and buyers step in [1].

To implement this strategy effectively, investors are advised to use on-chain data tools to monitor the 1-week and 1-month realized prices. When Bitcoin’s market price falls below either of these levels, it may serve as a signal to begin accumulating. Investors are encouraged to build positions gradually, taking advantage of the increased selling pressure from short-term traders [1].

This approach is not without risks, but it provides a structured and historically grounded method for buying Bitcoin at lower prices. It emphasizes patience and discipline, key traits for successful long-term investment in volatile markets [1].

Source: [1] Smart Bitcoin Buying Strategy Using Realized Price (https://coinmarketcap.com/community/articles/6895cbc5f559a4772ef42cdf/)