Bitcoin needs to maintain certain pricing models for rally continuation.

Here are the current pricing models that Bitcoin needs to stay above if the cryptocurrency’s bullish momentum is to continue.

These Bitcoin Pricing Models Are Currently Near The Spot Price

On-chain analytics firm Glassnode has pointed out that the adjusted realized price, short-term holder cost basis, and 200-week MA are all currently close to the asset’s value in a new tweet.

Firstly, to understand the first and second models, the “realized price” needs to be looked at. The realized price is a pricing model derived from the realized cap, which is a capitalization model that assumes the “real” value of each coin in the circulating supply is not the spot price, but the price at which it was last moved.

The first pricing model, the “adjusted realized price,” is a modification of this indicator that drops from the data all holders who haven’t moved their coins since more than seven years ago. This is because such an old supply usually consists mostly of lost coins, which means that this part of the supply wouldn’t be relevant to the current market.

The second model, “short-term holder (STH) cost basis,” keeps track of the realized price of specifically the investors who have been holding their coins since less than 155 days.

Historically, these models have acted as both resistance and support for the price, depending on the wider trend. In bullish periods, they usually act as support so it’s possible that if the price drops deep enough to hit them, a rebound may happen.

The third line on the chart, the 200-week moving average (MA), is a model that aims to find the baseline momentum of the four-year Bitcoin cycle. This line has also had some similar interactions with the price as the other two models.

The current values of these models are displayed in the above graph. The Bitcoin adjusted realized price currently has a value of $25,300, while the short-term holder cost basis has a value of $26,000. The 200-week MA has a value of $26,300 right now, implying that it’s currently the closest line to the spot price. It remains to be seen how the price interacts with these lines, starting with the 200-week MA, if a drawdown extended enough happens.

A successful retest of these lines would naturally be a positive sign for the rally, but a drop under them may be a signal that a transition back towards a bearish regime has occurred.

BTC Price

At the time of writing, Bitcoin is trading around $27,000, up 1% in the last week.