Bitcoin’s price has cleared a key hurdle that has historically preceded major bull runs
Bitcoin has closed a week above its 50-week moving average for the first time in nearly a year, a technical indicator that analysts suggest may signal the end of a bear market. Historical data indicates that this specific crossover has preceded major bull runs in the past.
Why it matters
Market participants closely watch these technical indicators to gauge long-term trends in cryptocurrency valuation and investor sentiment.
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.
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.
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