Bitcoin Surges Past Key Moving Average Threshold
Bitcoin's price surged to $85,257 on September 21 after crossing its 50-week moving average for the first time in 45 weeks. According to Galaxy Research, this signals a strengthening market and potentially predicts the end of a bear market.
The 50-week moving average is an indicator that shows the average closing prices over the last 50 weeks. Bitcoin's weekly close at $81,159 on September 20 was about 3% above this key line, marking its first time above it since October 2025.
The surge in price was also driven by a short squeeze, where traders with short positions were forced to cover their losses, resulting in a $300 million buying frenzy within an hour. However, once the shorts were cleared, the buying momentum typically stops, causing Bitcoin's price to fall back to $84,702.
Galaxy Research notes that historically, reclaiming the 50-week average predicts the end of a bear market. The next significant test for Bitcoin will be on September 30 at the end of the quarter, where it holds a comfortable margin over its last close of $58,524.