The price of the flagship cryptocurrency Bitcoin surpassed its 200-day simple moving average (SMA) in October and entered bullish territory, before making a new all-time high above $73,500 last month.
The 200-day SMA serves as a key indicator of long-term trends, and its current rapid rise signifies strong bullish momentum. Notably, the indicator is on track to surpass its previous peak of $49,452 set in February 2022, currently hovering at $47,909 while Bitcoin trades at $66,200, according to a CoinDesk report.
Historically, data suggests that the most intense phases of Bitcoin bull markets unfold after the 200-day SMA breaks its previous high as a similar pattern emerged in early November 2020, six months after the third halving event. The 200-day SMA climbed above $10,320 at the time, and by mid-April 2021, Bitcoin had experienced a significant 4.5-fold increase to $63,800.
Looking back further, the 200-day SMA reaching new highs in December 2016, roughly five months after the second halving, preceded a monumental surge. Bitcoin witnessed a staggering 2,000% rise to over $19,000 within a year, while a similar trajectory occurred after the first halving in November 2012, which coincided with the average reaching a new peak.
While past performance is not necessarily indicative of future results, certain elements of these cycles appear to be repeating. For example, Bitcoin’s bear market reached its climax in November 2022, followed by price increases, aligning with the historical pattern of bottoming out 15 months before a new halving cycle began to fuel a rally.
As CryptoGlobe reported, a popular cryptocurrency analyst known in the space for accurately predicting the cryptocurrency market bottom during the 2018 bear market has recently revealed he believes that Bitcoin will make a new all-time high “within the next 1-2 weeks.”
The analyst revealed he sees Bitcoin’s price top around the $120,000 mark this cycle after noting that he sees it in wave five of a larger trend. Not everyone is as bullish, however, with a recent report from Fidelity Digital Assets suggesting Bitcoin is no longer “cheap” and is instead considered to be trading at its “fair” value.
Featured image via Unsplash.
