Bitcoin 200-day Moving Average Hits Record High
07 May, 2024 ● Coin news
The Bitcoin 200-day moving average has reached an all-time high of $50,178, a key technical indicator that suggests a bullish long-term outlook for Bitcoin price trends.
According to BuyBitcoinWorldwide, this peak was hit on May 6, as Bitcoin recovered from a post-halving price dip that saw it drop to as low as $56,800 after the network’s block rewards were halved to 3.125 BTC on April 20.
The 200-day simple moving average (SMA) calculates the average of Bitcoin’s closing prices over the last 200 days, smoothing out short-term fluctuations to provide traders and analysts with a long-term trend indicator.
When BTC prices are above this indicator, as they currently are, it typically signals a bullish long-term trend. Conversely, prices falling below the 200-day moving average indicate a bearish trend.
Speaking on CNBC’s Squawk Box on May 6, Bitcoiner Anthony Pompliano highlighted the significance of the 200-day moving average crossing $50,000 for the first time.
“Over the long run, Bitcoin continues to trend upward even though on a day-to-day basis that price is volatile,” he stated. He also added in an X post, “Don’t get lulled to sleep by Bitcoin going sideways. The long-term thesis is as strong as ever.”
Analyst Willy Woo’s WooCharts price models indicate that the 200-week moving average, another long-term trend indicator, is also at an all-time high of just over $34,000, suggesting an even more bullish yearly trend outlook.
Bitcoin’s price crossed the 200-week moving average in mid-October and has remained above it since. Additionally, spot prices are significantly higher than the realized price (RP) indicator, which is around $29,000.
The RP measures the value of all Bitcoin at the price they were last transacted on-chain, divided by the number of BTC in circulation, and serves as another long-term trend indicator.
However, the shorter-term 50-day moving average has declined slightly from its peak in mid-April as BTC fell from its mid-March all-time high.
Pompliano also noted that the Grayscale spot Bitcoin exchange-traded fund (ETF) posted its first inflows on May 3, with an inflow of $63 million after experiencing net outflows of over $17.5 billion since it was converted from a trust to a spot ETF in mid-January.
This momentum continued with another inflow of $3.9 million on April 6, according to preliminary data from Farside Investors.
Sources:
https://cointelegraph.com/news/bitcoin-record-high-200-day-moving-average
https://buybitcoinworldwide.com/charts/200-day-moving-average/
https://twitter.com/APompliano/status/1787466346671817208
