Bitcoin Breaks Above 50-Week Moving Average After 45 Weeks
Bitcoin has closed above its 50-week moving average for the first time in 45 weeks, sparking hopes that the bear market may be over and a new uptrend could be starting.
The cryptocurrency's move back above the 50-week moving average on a weekly closing basis is seen as a significant signal by analysts. In 11 out of 13 instances since 2011 where Bitcoin moved back above this level, it did not fall below its prior low again, according to Galaxy Research.
Alex Thorn, head of research at Galaxy, noted that the breakout could be an important signal that Bitcoin's bearish phase has ended. He emphasized that Bitcoin did not merely move above the average intraday but actually closed the week above it.
The 50-week moving average reflects Bitcoin's weekly closing prices over roughly the past year and is used to gauge the long-term trend. In bull markets, prices generally trade above this level, while in prolonged downturns, Bitcoin has often failed to reclaim the line even during rebounds.