The "strike" price of BTC is the price at which BTC was last moved and is often considered the "average bid price of BTC" in on-chain analysis. The realized price can be divided into "less than 6 months" and "above 6 months" to find the "average purchase price for short-term holders (STH realized price)" and "average purchase price for long-term holders ( LTH realized price)". Averaging the bid price through the strike price is important to investor psychology because "avoiding losses" motivates them to sell when the price reaches their strike price.

It is important to know that the STH realized price became a support level in early 2023 and recently became a resistance level again. Currently, BTC price (about $25,000) is between STH realized price ($28,000) and LTH realized price ($22,400). In short, BTC price needs to hold above the LTH realized price and then break back to the STH realized price for "short and long-term investor sentiment" to truly recover.