Bitcoin News Today: Bitcoin's Realized Cap Rises Amid 9.5% Price Drop to $112,656

Bitcoin’s realized capitalization, a key on-chain metric that measures the total value of coins that have not changed hands since their last transaction, unexpectedly rose as the cryptocurrency’s spot price declined to $112,656 on August 19. This divergence between price and realized cap highlights the nuanced behavior of on-chain activity, which often moves independently of short-term price action. Analysts have noted that the metric’s resilience amid the price drop suggests strong holding pressure from long-term investors, reinforcing the idea that the current pullback may be a consolidation phase rather than a bearish reversal [1].

The price decline came after Bitcoin surged to a peak of $124,000 earlier in the week, creating a sharp correction that has pushed retail investor sentiment toward “ultra bearish” levels, according to recent analysis [2]. Despite this bearish outlook, the increase in realized cap implies that the average cost basis for a large portion of Bitcoin’s supply has not followed the price downward. This could indicate a potential support level for future price action and suggests that selling pressure is not as widespread as the price drop might imply [3].

From a technical perspective, the recent dip has drawn close attention from traders and analysts, particularly in the context of on-chain volume and derivatives sentiment. The drop appears to reflect profit-taking after a strong rally to $121,000 earlier in the month, rather than a broad-based panic sell-off [4]. This interpretation is supported by the fact that on-chain activity has remained resilient, with a significant amount of Bitcoin still held by investors who have not moved their positions.

The contrast between spot price and realized cap provides a more comprehensive view of Bitcoin’s market dynamics. While the price has pulled back, the on-chain data suggests that the fundamental strength of the network remains intact. Investors and analysts are now closely monitoring whether Bitcoin can reclaim key resistance levels or if the current correction will develop into a more prolonged bearish phase [1].

Source:

[1] Why Bitcoin's realized cap spiked as price fell to $112k (Coinlive) https://www.coinlive.com/news-flash/875021

[2] Bitcoin Plunge: Retail Sentiment Shifts to 'Ultra Bearish' (Instagram · bitcoin.info.9) https://www.instagram.com/bitcoin.info.9/p/DNke9MMxf1h/

[3] CBBTC Price Performance and Relative Strength (RSI Hunter) https://rsihunter.com/asset/cbbtc

[4] Bitcoin (BTC) Market Analysis: Navigating New Highs and ... (Blockchain News) https://blockchain.news/news/bitcoin-btc-market-analysis-new-highs-volatility