Bitcoin's 50-Week Average Reclaimed, Signals Bear Market Low

Bitcoin has regained its 50-week moving average after being below it for 45 weeks. This signal, according to Alex Thorn of Galaxy, has historically confirmed bear market lows in four out of five instances.

In a research note, Thorn identified 13 times when Bitcoin crossed back above the 50-week moving average in previous bear markets. In only two cases was this followed by another lower low, both occurring during the 2021-2022 decline.

Bitcoin has gained roughly 30% since August and stayed in the green for September with a 3.33% gain. Despite analysts such as Benjamin Cowen still expecting the low to arrive in October, Sunday's weekly close above the moving average strengthens the case that the bear market lows for this cycle may be in.