Bitcoin's Reclaim of Moving Average Signals Bull Market Ahead

The Bitcoin bear market may be over, according to crypto analysts who have studied the historical data of six similar signals since 2012. These signals are triggered when Bitcoin closes weekly above its 50-week moving average for the first time after staying below it for a meaningful period.

In this case, the signal is looking promising, with Bitcoin having spent 45 weeks below the 50-week average and currently sitting at a CSH score of 37.4. Historically, four out of six instances of reclaiming the moving average have launched bull markets, while two were traps.

The current situation bears some resemblance to the May 2020 signal that sparked a six-bagger rally, which also came after a relatively mild week. However, the key difference is that this time Bitcoin is already 38% above its July low, compared to being only 65% to 80% off its lows in previous instances.

The analyst's plan is to wait for consecutive weekly closes above the moving average before declaring the bear market over. If a weekly close drops back below the 50-week average within the next eight weeks, it will be considered a trap and the plan will continue buying under a score of 35.