Bitcoin Breaks Above Key Moving Average
Bitcoin has made a significant move by closing above its 50-week moving average for the first time in over 10 months, sparking hopes that the bear market may be coming to an end. The cryptocurrency closed at $81,159 on Coinbase on Sunday, surpassing its 50-week moving average of $78,788.
According to Alex Thorn, head of firmwide research at Galaxy Research, retaking the 50-week moving average has previously confirmed the end of a bear market in four out of five completed bear markets. In those instances, once the level was broken to the upside, the bottom of the bear market was established.
Ben Simpson, founder of crypto research company Collective Shift, stated that Bitcoin closing above its 50-week moving average would be 'the last thing I need to see before I call this a bull market.' Ryan Lee, chief analyst at Bitget, noted that reclaiming the level tends to happen after the major low is established and longer-term momentum has started to recover.
However, Lee also cautioned that one weekly close above the 50-week moving average is not enough to confirm that Bitcoin has reached its cycle bottom. He emphasized the importance of Bitcoin staying above the 50-week average and forming higher lows in order to solidify the bull market case.