Recently, Bitcoin’s 200-week moving average (200WMA) surpassed the $47,000 mark, potentially signaling the end of price dips below this level for good.
The 200WMA is widely considered one of the most reliable long-term indicators in the crypto market, often acting as a soft price floor during major cycles.
Historical Significance of the 200WMA
Bitcoin has only fallen below its 200-week moving average during periods of extreme market stress, notably in early 2020 and late 2022. Now that the 200WMA is steadily rising above $47,000, it could indicate the beginning of a new era for Bitcoin, one where prices stay above this key threshold.
According to Adam Back, the 200WMA’s upward trajectory repeats the broader rally in cryptocurrency prices over the past year.
While short-term fluctuations are inevitable, Back’s chart suggests that the 200WMA reflects the behavior of long-term investors and overall market structure, rather than temporary hype.
A Shift in Market Trends?
This development doesn’t eliminate the possibility of future corrections, but it does suggest that the chances of Bitcoin dropping below $47,000 are increasingly unlikely. As the 200WMA continues to rise, Bitcoin could enter a new phase of higher price levels, making sub-$47,000 prices a thing of the past.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/bitcoins-200-week-moving-average-suggests-end-of-sub-47000-prices/