Bitcoin Nears Crucial Confirmation as 50-Week Moving Average Crossed

Bitcoin has crossed an important threshold in its recent rally, surpassing the 50-week moving average that Galaxy Research says marks the end of four out of five bear markets. This level is currently around $81,800.

The intraday high on September 3 pushed above this line, but a weekly close above it is still required to confirm the signal. Historically, when Bitcoin has reclaimed this level in previous bear markets, it marked the bottom.

However, there is one exception: the 2021-2022 period saw Bitcoin briefly reclaim the level twice before falling to a new low. The current drawdown from the peak of $124,800 to the low of $58,500 amounts to roughly 53%.

CryptoQuant analyst Darkfost noted that apparent demand for Bitcoin is still weak, and the buyer base has not yet grown large enough to absorb sellers as price keeps climbing. Wallets holding more than 100 BTC added around 60,000 BTC in August, while smaller holders sold.