For the company Alfractal
Staying below the realized price means discomfort and potential increased selling, making the $88,800 level critical for Bitcoin's next direction
After mid-week easing, Bitcoin (BTC) is trading slightly above $87,000, but it is still below a key level that could determine its next move.
A new note indicates that failing to rise above $88,800 may lead to more profit-taking, as active investors remain at a loss and market pressure increases.
Bitcoin challenges the barrier of $88,800
The drop in Bitcoin's price below the actual realized price, which currently stands at around $88,800, has become a critically important pivot point, according to the founder and CEO of Alfractal, Joao Widson. The actual realized price refers to the average cost of active investors, excluding lost, dormant, or unutilized coins, thus representing what the most engaged participants paid for their Bitcoins.
When Bitcoin trades above this level, the situation generally stabilizes, as most active investors gain profits, which alleviates selling pressure, and the market tends to stabilize. However, with Bitcoin remaining below this level, investor sentiment shifts. Widson clarified that this situation may concern investors, and historically, such conditions encourage increased short-term selling, especially if the price struggles to regain this level quickly.
The founder added that this is not a cause for panic, but it is important to pay close attention. If the asset fails to regain its active realized price in the coming days, more profit-taking may occur. On the other hand, a decisive return above $88,800 indicates renewed strength and confidence, and active investors will return to profit. This outcome typically alleviates market pressure and supports positive momentum.
