Bitcoin's 200-Day Moving Average Hits All-Time High, Signaling Bullish Long-Term Trend
Summary:
Bitcoin's 200-day moving average has hit a record high of $50,178, indicating a positive long-term outlook, even as Bitcoin recovers from a post-halving dip. The 200-week moving average, another key indicator of long-term trends, has also reached an all-time high of over $34,000. Analysts suggest these figures point to a bullish yearly trend outlook for Bitcoin. Bitcoin advocate, Anthony Pompliano, during an appearance on CNBC’s Squawk Box, asserted that Bitcoin maintains an upward trend over time despite daily price volatility. He also noted that Grayscale's spot Bitcoin exchange-traded fund (ETF) saw its first inflow on May 3.
Bitcoin's (BTC) 200-day moving average has reached a record high of $50,178. This important technical indicator for forecasting long-term Bitcoin price trends points to a positive future outlook. As reported by BuyBitcoinWorldwide, this indicator achieved its highest value on May 6. This comes as Bitcoin makes a comeback from a post-halving price slump that saw it plummet to $56,800 following a halving of the network's block rewards to 3.125 BTC on April 20.
The 200-day simple moving average (SMA) determines the last 200 days of Bitcoin's closing price and divides it by 200 to smooth out short-term price variances, providing traders and analysts with a long-term trend indicator.
When BTC prices trade above this particular indicator — which they currently are — it typically indicates an upbeat long-term trend. Conversely, the trend is considered bearish when prices fall below the 200-day moving average.
On May 6, Bitcoin advocate Anthony Pompliano discussed on CNBC’s Squawk Box the $50,000 200-day moving average milestone for the first time. He emphasized that Bitcoin maintains an upward trajectory over time, despite its daily price volatility.
In a tweet, Pompliano warned against complacency due to Bitcoin's sideways movement, asserting that the long-term theory remains as robust as ever.
Analyst Willy Woo’s WooCharts price models show that the 200-week moving average, another long-term trend indicator, has also reached a record high, exceeding $34,000. This suggests an even more positive yearly trend outlook. The Bitcoin price went over the 200-week moving average in mid-October and has remained above it ever since.
As a long-term trend determinant, the realized price (RP) indicator, which is about $29,000, is significantly lower than the Bitcoin spot prices. The RP quantifies the value of all Bitcoins at the price they were last transacted on-chain, divided by the number of BTC in circulation.
Nonetheless, the shorter-term 50-day moving average has seen a minor dip from its mid-April peak as BTC lowered from its all-time high in mid-March.
As Pompliano noted, Grayscale's spot Bitcoin exchange-traded fund (ETF) experienced its first inflow on May 3. The fund witnessed an inflow of $63 million following net outflows exceeding $17.5 billion since it switched from a trust to a spot ETF in mid-January. This momentum has progressed, with the fund registering another, albeit smaller, inflow on April 6 amounting to $3.9 million, as indicated by preliminary data from Farside Investors.
Published At
5/7/2024 7:21:36 AM
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