Bitcoin
Bitcoin (BTC) 200-day average is approaching a record high; See why it matters
Bitcoins (BTC) price entered bullish territory above the 200-day simple moving average (SMA) in October, setting record highs above $73,000 last month.
Now the average, a crucial barometer of long-term trends, is also rising rapidly in a sign of strong bullish momentum and looks set to surpass its previous peak of $49,452 in February 2022. At press time, bitcoin was traded at $66,200, with the 200-day average at $47,909.
This is noteworthy for traders, as past data shows that the most intense phase of the bull cycle unfolds after the average surpasses its previous peak to new all-time highs.
In early November 2020, six months after the third halving, bitcoin’s 200-day SMA rose to its highest level above $10,320. In mid-April 2021, bitcoin rose 4.5x to $63,800.
The cryptocurrency rose more than 2,000% to nearly $20,000 in 12 months after the average reached new highs in December 2016, or five months after the second halving. A similar meteoric rally occurred after the average reached a new peak in November 2012, around the time of the first halving.
As always, past data is no guarantee of future results.
That said, some features of previous cycles were repeated as much as possible. For example, the BTC bear market climaxed in November 2021, and prices rose in subsequent months, which aligns with the historical pattern of bottoming out to begin a new recovery 15 months before the halving. Bitcoin blockchain implemented the fourth mining reward was halved on Saturday, reducing coin issuance per block from 6.25 BTC to 3.125 BTC.
Most analysts are visible that growing concerns about public debt will eventually force the US Federal Reserve (Fed) to quickly cut interest rates, keeping risky assets, including cryptocurrencies, on an upward trend.