The leading cryptocurrency, Bitcoin, surged 2.5% in the last 24 hours, climbing above $84,000 for the first time since January 30th. BTC’s gains over the past week have reached nearly 9%, and over the past month, almost 30%.
While altcoins followed Bitcoin’s rise, Ethereum surged 5.5% in the last 24 hours, surpassing $2,700. This marks the first time ETH has exceeded $2,700 since the end of January.
Bitcoin Breaks Through Critical Technical Level Again!
Bitcoin, which has continued its upward movement in recent days, finished the week ending September 20 above its 50-week moving average, regaining a significant technical level after approximately 45 weeks.
At this point, Galaxy Digital Research Head Alex Thorn stated in a post on his X account that Bitcoin had closed the week above its 50-week moving average.
Thorn stated in his post that the recapture of the 50-week moving average is a strong signal/confirmation that bear market bottoms have formed in the past.
Thorn also noted that Bitcoin has risen by approximately 29 percent in the last 35 days, adding that such a close has occurred for the first time in 45 weeks.
“Historically, Bitcoin’s regaining the 50-week moving average has generally served as strong confirmation that the bear market is at its bottom.”
Why is the 50-Week Moving Average Important for Bitcoin?
The 50-week moving average is considered one of the technical indicators followed to assess Bitcoin’s long-term price trend. According to research published by Galaxy in early September, in four out of five completed bear markets, Bitcoin did not see a new low after breaking above the 50-week moving average for the first time. The research noted that 2021 was an exception to this historical pattern.
According to the analyst, Bitcoin closed the week around $81,000, while the 50-week moving average is around $78,800. However, this technical indicator alone does not prove the start of a new bull market. Whether the market can maintain the 50-week average as support in the coming weeks is important for the sustainability of the signal.
*This is not investment advice.
