Bitcoin Reclaims Key Moving Averages, Alters Bear Cycle Pattern
Bitcoin (BTC) has reclaimed its key moving averages, potentially altering its bear cycle pattern. According to K33, this is only the fourth time in Bitcoin's history that it has done so, with all previous instances occurring after a cycle low had already been established.
In each of these cases, Bitcoin pushed higher with solid momentum following the reclaiming of its major moving averages, suggesting a possible change in trend. The recent drawdown reached 54% from the October 6 all-time high of $126,296, but is still relatively less severe than previous market downturns.
K33 also noted that neither derivatives positioning nor market sentiment indicate meaningful near-term downside risk for Bitcoin, while pointing to 'considerable catch-up potential' versus gold and equities in a favorable broader backdrop.