Bitcoin is displaying signs of a potential price recovery as its longer-term moving averages are gradually advancing. The weekly moving average chart suggests that the asset is currently positioned above these WMAs, with the 50-week SMA at $74,890 and the 20-week SMA approximately at $91,070.
Historically, BTC has entered a robust bullish phase when its price remains above these indicators. During previous bull markets, the 20-week SMA has served as a reliable support level that facilitated further price appreciation. The 200-week SMA, currently at $44,580, continues to serve as a critical macro-level support.
Bitcoin has notably rebounded from this moving average during previous bear markets, underscoring that its fundamentals remain intact. The long-term positive outlook for Bitcoin is bolstered by the increasing gap between its price and the 200-week SMA. Compared to shorter-term moving averages, Bitcoin’s position marks a significant development.
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With the 20-week SMA overtaking the 50-week SMA, a bullish crossover has been established. Historical patterns suggest that such crossovers often precede extended uptrends. A similar scenario for Bitcoin was observed before the explosive rally in 2021. Furthermore, Bitcoin trading above the 100-week SMA ($54,930) highlights the continued positive momentum in the short- to medium-term. The next logical resistance level emerges at the eight-week SMA ($98,960), should Bitcoin maintain its current position.
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A breakthrough above this level may pave the way for price levels reaching into the six figures. If Bitcoin’s price action consistently stays above these key moving averages, bullish momentum may solidify. Bitcoin could potentially target the psychological $100,000 mark if it continues to progress with solid support at $91,000 (20-week SMA) and $74,000 (50-week SMA).
Given that Bitcoin is currently trading well above prior support levels, the market sentiment remains optimistic. However, traders should remain vigilant for any potential declines, as volatility continues to characterize Bitcoin’s price movement. If Bitcoin maintains its respect for these crucial SMAs, a sustained bull run may be on the horizon.
