Potential bullish trend as Bitcoin's 200-day average nears a much anticipated high
The 200-day average metric holds importance as it provides insights into the long-term performance and stability of Bitcoin
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The Bitcoin price surged above the 200-day simple moving average (SMA) in October, hitting a record high of over $73,000 in March. When the price remains above the 200-day SMA, it suggests a positive outlook and a strong bullish trend.
Currently, the 200-day average, a key indicator of long-term trends, is increasing rapidly, signalling strong bullish momentum and is on track to surpass its previous peak of $49,452 in February 2022. As of now, the Bitcoin price is at $64,159, marking a 4.85 percent increase over the past week, while the 200-day average stands at $47,909.
This development is significant for traders as historical data suggests that the most vigorous phase of a bullish cycle typically follows when the average exceeds its previous peak, leading to new all-time highs.
For example, in early November 2020, six months after the third Bitcoin halving, Bitcoin's 200-day SMA reached its then-highest point above $10,320. By mid-April 2021, Bitcoin had surged to $63,800, demonstrating the potential for substantial growth and positive market momentum.
In December 2016, five months after the second Bitcoin halving, the 200-day moving average reached a new record. After that, Bitcoin experienced a substantial increase of over 2,000 percent within 12 months, peaking close to $20,000. Similarly, a swift uptrend occurred in November 2012, around the time of the first Bitcoin halving, following the 200-day moving average's new high.
