One analyst explained how the intersection between these two Bitcoin metrics must occur before the “fun” for the asset can begin.
The realized price of Bitcoin has not flipped after the 200-week MA
In new mail On Day X, analyst James Van Straaten discussed the realized price and the 200-week moving average (MA) of Bitcoin. “Realized price” here refers to an on-chain indicator that tracks, in short, the cost basis or acquisition price of the average investor on the BTC network.
When the spot price of a cryptocurrency is greater than this measure, it means that its holders as a whole are in a state of unrealized net profit. On the other hand, its presence below the indicator indicates that the market in general is maintaining a loss.
The 200-week moving average, which is the other important measure here, is an indicator from technical analysis. A moving average is a tool that calculates the average value of a particular quantity over a specific period of time and as its name suggests, it moves over time.
Moving averages are useful for studying long-term trends, as they remove all short-term kinks from the asset price chart. Some moving averages are more important than others, with one of these periods being the 200 week period.
Below is the chart shared by the analyst that shows the trend in Bitcoin’s realized price and its 200-week moving average over the past several years.
As can be seen in the chart, the realized price of Bitcoin fell below the 200-week moving average during the bear market of 2022. Since then, the gauge has remained below the line, but recently, it has been rapidly approaching a retest.
From the chart, it is clear that the previous crossovers of the indicator above the moving average led to complete bullish moves for the cryptocurrency. “When the realized price turns over the 200WMA, the fun begins,” notes van Straaten.
Therefore, it is possible that this crossover could lead to Bitcoin rising in the current session as well. However, it remains to be seen if the achieved price will actually end up surpassing the level in the near future or if a rejection is waiting.
On the other hand, the achieved price has historically been the borderline of bear market lows in the asset price. As mentioned earlier, the majority of the market enters a losing streak when Bitcoin falls below the scale. There are not many sellers anymore looking to make profits in such a market, which is why the asset tends to bottom during it.
Bitcoin price
Bitcoin showed a sharp jump over the past day as its price recovered to the $96,600 level after falling below $90,000 yesterday.
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