Bitcoin Reclaims 50-Week Moving Average: Bear Market Over?
Bitcoin has reclaimed its 50-week moving average after a 45-week struggle. This milestone, according to Galaxy Research's head Alex Thorn, could signal the end of the bear market and the beginning of a new uptrend.
The 50-week moving average serves as a proxy for Bitcoin's long-term trend. Historically, when Bitcoin closes above this line, it has marked the end of major downturns. Galaxy Research analyzed 13 instances where this occurred and found that in 11 cases, no new low followed, suggesting the worst of the sell-off was over.
However, past performance is not a guarantee of future results. The signal has failed twice before, during the turbulent period from late 2021 to early 2022. Bitcoin briefly climbed above the average but eventually slid towards $16,000 on both occasions.