PlanB: Bitcoin Realized Price Near 200-Week Moving Avg, What’s Next?

By Varinder Singh
April 20, 2022 Updated April 27, 2022
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BTC recovers from 2020 lows

Bitcoin (BTC) is currently moving sideways in the $38k-40k range after rebounding again from the strong support level in the last two days. With Bitcoin investors being skeptical over whether to buy at current levels or wait for a further dip, PlanB, the creator of the popular Stock-to-Flow (S2F) model, noted that the token’s realized price is near the 200-week moving average (WMA).

Bitcoin (BTC) Price Approaches 200-Week Moving Average

PlanB has said in a tweet recently that Bitcoin’s (BTC) realized price is near the 200-week moving average. Interestingly, the 200-week moving average heatmap is a key indicator by PlanB that predicts when the BTC price has bottomed out. In the last two bitcoin market cycles, the BTC price had bottomed out around the 200-week moving average.

Meanwhile, the Bitcoin realized price near the 200-WMA indicates when a massive rally in Bitcoin can be expected. Historically, in 2016-end and mid-2020, the Bitcoin price rose massively after realized price reached the 200-WMA level. This could be the third time when a massive bullish rally could be seen from the current levels, as the realized price is near the 200-WMA again.

 Bitcoin Price Approaches 200-Week Moving Average
Bitcoin Realized Price Approaches 200-Week Moving Average. Source: PlanB

Bitcoin 200-Week Moving Average Heatmap can be easily used to predict BTC price. Orange and red dots indicate a good time to sell Bitcoin as the market overheats. Whereas, purple and blue dots near the 200-week moving average have historically been good times to buy.

BTC Price Builds Bullish Momentum

Bitcoin price has rallied significantly higher after the recent bloodbath in the crypto market. At the time of writing, the BTC price is up nearly 5% in the last seven days and 2.5% in the last 24 hours. The price is currently trading at $41, 579.

Moreover, the Bitcoin whales have utilized the ‘Buy The Dip’ opportunity to accumulate Bitcoin. The Nasdaq 100 index, which BTC tracks closely, has also risen over the past two days. It points to an upcoming Bitcoin rally, however, retail investors should wait before whales confirmed bullish momentum.

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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