SignalQuant2023-09-12

BTC stuck between short-term holders and long-term holders!

The "realized price" is the price at which BTC was last moved and is often considered the "average purchase price of BTC” in on-chain analysis. The realized price can be separated into "less than 6 months" and "more than 6 months" of time periods to derive "average purchase price for short-term holders(STH realized price)” and "average purchase price for long-term holders(LTH realized price)" respectively. The average purchase price through the realized price is important for investors’ sentiment because “loss aversion’ motivates people to sell when its price reaches their realized price. We should know that STH realized price, which was a resistance level for its price throughout 2022, turned into a support level in early 2023, and recently turned into a resistance level again. As a result, its current price(around $25,000) is between STH realized price($28,000) and LTH realized price($22,400). To sum up, BTC price needs to stay above LTH realized price and then break back above STH realized price for the "short- and long-term investor sentiment" to really recover.