Analyst Says Bitcoin Fun Will Begin When This Flip Happens
One analyst explains how a crossover between these two Bitcoin indicators must occur before the “fun” for the asset can begin.
Bitcoin’s actual price has yet to break above the 200-week moving average
in a new postal On X, analyst James Van Straten discusses Bitcoin’s realized price and 200-week moving average (MA). this”realized priceSimply put, what is being referred to here is an on-chain metric that tracks 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 indicator, it means that holders as a whole are in a state of unrealized net profit. On the other hand, anything below this indicator indicates that the overall market is losing money.
The 200-week moving average is another indicator to watch here and is derived from technical analysis. MA is a tool that calculates the average of a given quantity over a specified period of time, which, as the name suggests, changes over time.
Moving averages are useful for studying long-term trends because they remove all short-term concerns from asset price charts. Certain MAs are considered more important than others, and one has a period of 200 weeks.
Below is a chart shared by analysts showing the trend of Bitcoin’s realized price and the 200-week moving average over the past few years.
As shown in the figure, during the 2022 bear market, Bitcoin realized that the price fell below the 200-week moving average. The indicator has remained below that line since then, but recently, it has been rapidly approaching a retest.
It is evident from the chart that the indicator’s previous crossing of the moving averages led to an overall bull run in the cryptocurrency. “The fun begins when actual price flips over the 200WMA,” Van Straten noted.
Therefore, this crossover has the potential to ultimately be bullish for Bitcoin in the current cycle as well. It remains to be seen, though, whether prices will actually exceed that level in the near future or whether it will be rejected.
On the other hand, historically realized prices have been price boundaries. bear market The low point in asset prices. As mentioned earlier, when BTC falls below this indicator, most markets enter a loss-making situation. There are very few sellers left looking to take profits in a market like this, which is why the asset tends to bottom during this period.
bitcoin price
Bitcoin has seen significant gains over the past day, with its price recovering to the $96,600 mark after hitting lows below $90,000 yesterday.
