Indicator Determining the Fate of Bitcoin at Record Levels: Is a New Rally Coming? - Coin Bulletin

One of the critical technical indicators of Bitcoin, the 200-week moving average (200WMA), is signaling strong long-term rise potential as it approaches 50 thousand dollars for the first time.

One of the indicators that investors closely monitor in the cryptocurrency markets, the 200-week moving average, has reached approximately 49,223 dollars for the first time in history. According to Glassnode data, this average has served as a strong support point for prices during all major declines of Bitcoin over the past 10 years. It provided strong support at around 200 dollars during the major decline in 2015 and at the 3,000 dollar level during the 2018 bear market.

In the recent correction that Bitcoin experienced, the price managed to stay above another critical level, the 200-day moving average (200DMA). BTC had recently declined to the 98 thousand dollars level due to the US-Iran tension. However, the fact that the price has held above the 200DMA, which is currently at 96 thousand 246 dollars, has increased investors' confidence in market conditions.

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( Does History Repeat Itself?

The 200-week moving average in Bitcoin history holds great psychological and technical significance for the market. For example, during the Covid-19 pandemic, although the BTC price briefly fell below this level, it experienced a rapid recovery. However, it should not be forgotten that the BTC price spent approximately 15 months below the 200WMA during the long bear market between June 2022 and October 2023.

Experts believe that during this period when stock markets like Nasdaq 100 and S&P 500 continue to set records, the likelihood of Bitcoin reaching new peaks is high. This situation raises the expectations of crypto investors for the upcoming period.