The short-term average realized price(=sth price) is an important key level for the BTC price, typically acting as resistance in bear markets and support in bull markets.
In fact, the sth price was a strong support for the price during the bull market in '23.Q4 and '24.Q.
However, with the recent market decline, the price has fallen below the sth price and investor sentiment has become more subdued indeed!
If the price does not move above the sth price quickly, it will likely turn into a resistance level for the price going forward.
Written by SignalQuant