The Bitcoin Realized Price has surged above the asset\u2019s 200-week moving average (MA). Here\u2019s what could happen next, according to history.<\/p>\n
As pointed out by analyst James Van Straten in a new post<\/a> on X, the Bitcoin Realized Price and 200-week MA have seen a crossover. The \u201cRealized Price<\/a>\u201d here refers to an on-chain indicator that, in short, keeps track of the cost basis of the average investor or address on the BTC network.<\/p>\n When the value of this metric is higher than the spot price, it means the holders as a whole are in a state of net unrealized profit. On the other hand, it being under BTC\u2019s value suggests the average investor is underwater.<\/p>\n The 200-week MA, the other metric shared by the analyst, is a technical analysis (TA)<\/a> pricing model that averages BTC\u2019s closing price over the last 200 weeks. Since 200 weeks roughly equal four years, this indicator is used to gauge BTC\u2019s trend shifts over a classic four-year cycle<\/a>.<\/p>\n Now, here is the chart shared by Van Straten that shows the trend in the Bitcoin Realized Price and 200-week MA over the past decade:<\/p>\n As is visible in the above graph, the Bitcoin Realized Price has gone up over the past year, a natural result of BTC\u2019s spot price following an uptrend. As investors trade at the higher prices, they reprice the cost basis of their coins higher as well, thus raising the market average.<\/p>\n After the latest increase in the indicator, its value has surged above the 200-week MA. The last time that the former was higher than the latter was in the previous cycle.<\/p>\n Back then, the crossover occurred in 2020, and the orientation was maintained until 2022. Interestingly, the timing of the crossover coincided with the start of that cycle\u2019s bull run. In the 2017 cycle, no crossover preceded the bull run as the Realized Price never dipped under the 200-week MA, but a retest did occur, which sent the metric flying up alongside the spot price.<\/p>\n \u201cWhen the uptrend begins, so does the bull market,\u201d notes the analyst. It now remains to be seen whether something similar as in the past would occur, with the Bitcoin Realized Price seeing a sustained surge above the 200-week MA.<\/p>\n