Crypto asset analysis company CryptoQuant shared a noteworthy assessment regarding recent movements in Bitcoin's price. According to the analysis published by the company, Bitcoin has regained a level of critical importance in the market.

According to CryptoQuant data, Bitcoin has been closing above the “adjusted realized price” level for the past three days, excluding the 7-year and longer inactive supply. This level is currently around $72,300. This metric represents the average cost of the supply actively circulating in the market and is considered a “break-even” point for a broad range of investors.

The analysis adds that Bitcoin’s rise above this level is an important technical development, but for stronger trend confirmation, it should also be achieved with a weekly close above this level. Otherwise, it was noted that the possibility of rejection from this level is also on the table in the short term.

According to CryptoQuant, the main bullish signal will be that the price moves above this average cost and maintains itself within the standard deviation band. In such a scenario, more investors could move into profit, and it is assessed that the tendency of market participants to hold could strengthen.

When looking at past bear markets, it can be seen that this level is a critical turning point. During periods when Bitcoin falls below this average cost, long-term bearish trends often begin, and when it rises back above it, it usually signals the start of a new bullish cycle. During this process, it was also reminded that, #CryptoMarketRecovery except for the COVID-19 crash(, this level acted as support during pullbacks.

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