Strategy Tracks Bitcoin's 200-Week Moving Average as Key Inflection Point
Michael Saylor's company Strategy has started tracking Bitcoin's 200-week moving average (200W MA) in an effort to gauge the broader trend of the cryptocurrency market. This indicator is significant because it represents Bitcoin's average closing price over roughly four years.
The 200W MA has been a pivotal level for traders and investors, with prices trading above it 92% of the time since it became available. Currently, $BTC is sitting at $63,000, slightly below its 200-week simple moving average of $63,770.
Strategy's founder, Michael Saylor, announced this new strategy on X (formerly Twitter) and emphasized the importance of tracking Bitcoin's premium to its long-term average. He noted that prices have come under pressure in recent hours due to concerns about a delay in the passage of the Clarity Act, which is expected to unlock institutional investment in digital assets.
According to Kraken's analyst, buying Bitcoin when it trades at a discount to its 200-week average has produced median returns of over 113% over 12 months and 313% over two years. However, as Saylor warned, 'it remains to be seen if history repeats itself.'