Bitcoin Breaks Above 50-Week Average, Analyst Sees Three Possible Scenarios

Bitcoin has broken above its 50-week moving average, currently trading at $80,441.66 after a 4.6% gain over the past week.

This level historically marks turning points at the end of previous bear markets, and holding above it for several weeks straight could signal a bigger move higher.

An analyst tracking Bitcoin's structure notes that simply breaking above this level isn't enough, what matters more is whether it can hold above it for an extended period.

The analyst has laid out three possible scenarios: one where Bitcoin completes a clean five-part upward pattern, followed by a smaller three-part pullback; a deeper pullback to the $39,000 to $44,000 range if the current move fails to hold; or a sharper corrective move down after reaching new highs.

The analyst warns that if Bitcoin rallies to new highs and then reverses into a sharper correction, people may turn overly bullish right before the reversal, similar to how they were bearish before this recent rally began.