Bitcoin’s price has cleared a key hurdle that has historically preceded major bull runs
- Bitcoin closed above its 50-week moving average for the first time in 45 weeks, a technical signal that its bear market may have ended.
- Bitcoin was trading near $81,450 after gaining nearly 6 percent for the week and 29 percent over 35 days.
- Bitcoin avoided setting a new low after 11 of its 13 previous weekly moves above the average, but the outlook depends on whether it can remain above the roughly $78,115 level.
The final barrier standing between bitcoin
Bitcoin closed the week ended Sept. 20 above its 50-week moving average for the first time in 45 weeks, marking what Galaxy Research’s Head Alex Thorn described as a potentially important confirmation that the market’s bear phase may have run its course and a new uptrend is upon us.
The cryptocurrency rose nearly 6% during the week and was trading around $81,000, extending its rebound to 29% over the past 35 days. The move pushed Bitcoin’s weekly candlestick – the graphical representation of a week’s price action – above the 50-week average, rather than merely testing it.
That distinction matters.
Bitcoin trades around the clock, but its weekly candle closes at 23:59 UTC on Sunday, with a new candle opening immediately afterward. Analysts typically place more weight on the weekly or daily candles above a major moving average than on a brief move through it.
Why the 50-week average matters?
The 50-week moving average is simply the average weekly closing price over roughly the past year. In market analysis, it is often used as a proxy for Bitcoin’s long-term trend.