Bitcoin Holds Ground Above Key Trend Line, Eyes Critical Weekly Close

Bitcoin has reclaimed the $81,000 level and is trading above a key long-term trend line. Analysts say whether it can hold that range through the weekly close may determine the next move.

Crypto analyst Benjamin Cowen stated that a higher high and a weekly close above the 50-week moving average would significantly weaken the bear-market case. As of now, Bitcoin is trading at about $81,255, with the 50-week moving average standing at roughly $78,785, putting it about 3% above that level.

Cowen argued that a drop from current levels back below the 50-week moving average would instead align with the existing bear-market view. He also pushed back against claims that Bitcoin's four-year cycle has already broken down, citing historical instances where Bitcoin fell below the 200-week moving average in the second half of U.S. midterm election years.

Cowen suggested a staggered buying strategy through the second half of U.S. midterm election years as a relatively effective approach, especially considering past drops below the 200-week moving average.