Bitcoin's Bullish Signal Faces Crucial Test at $82,000
Bitcoin has crossed an important threshold in its history, surpassing the $81,800 50-week moving average that has historically marked the end of four out of five bear markets. According to Galaxy Research, this level has been a ceiling for Bitcoin's price action in past bear markets, with the first successful weekly reclaim marking the bottom.
However, one exception stands out - the period from 2021 to 2022, when Bitcoin reclaimed the level twice before falling to a fresh low. The current drawdown, which has seen Bitcoin decline by roughly 53% from its peak of $124,800, is similar in magnitude to the previous bear market.
Several analysts and researchers have pointed out that while the reclaiming of this level is a positive sign, it is not yet confirmed. A weekly close above the 50-week moving average is still required to signal a new bull market cycle, and Bitcoin needs to clear and hold $83,000 to $86,000 to absorb the long-term-holder supply identified by Glassnode.