Bitcoin on-chain data shows early signs of the presence of the BTC bottom

BTC bulls aim to confirm $20,000 as support as new on-chain data begins to signal that bottom may be reached.

Market news

Although Bitcoin (BTC) price support may be psychological for some traders, the stats behind BTC remaining above $20,000 for a week are strong indicators of price support or, in other words terms, of a new bear market bottom. Several Bitcoin data points may be able to establish a support level of $20,000.

Last week Bitcoin hit a high of $20,961. However, it never maintained its upward momentum as the rally died down, failing to break the $21,000 support. Following the rally as well as the rejection, Glassnode in the most recent report analyzes whether Bitcoin is hammering a bear market floor.

Breakdown of realized prizes

The realized price of Bitcoin shows the average cost paid by buyers for their BTC holdings. If the price of Bitcoin drops below the price realized by a user, they technically incur an unrealized loss. For visual effect, the UTXO realized price distribution shows the supply percentage distributed over the acquisition price.

The 2019 bear market shows that 30% of the total BTC supply was concentrated in the realized price range. In April 2019, the price exceeded the realized price, signaling the start of a new bull market.

Bitcoin UTXO completed price distribution in April 2019. Source: Glassnode

Looking at the current market and applying the same methodology, Bitcoin's realized price concentrates 20% of the supply between $17,000 and $22,000. Although this suggests that greater redistribution may be needed, the consolidation is important and highlights a