Bitcoin is showing technical indications of a price recovery as longer-term moving averages are slowly moving forward.
Bitcoin has shown technical signs of a price recovery, with longer-term moving averages (MAs) slowly advancing. The weekly moving average chart indicates that the asset is trading above WMAs, with the 50-week SMA at $74,890 and the 20-week SMA at around $91,070.
In the past, BTC has exhibited a strong bullish phase when its price levels remained above these indicators. During past bull markets, the 20-week SMA acted as a crucial support level, enabling further price growth. The 200-week SMA, currently at $44,580, remains a significant macro-level support.
Bitcoin has historically recovered from this moving average during bear markets, suggesting that its fundamentals are still strong. The widening gap between the price and the 200-week SMA further supports Bitcoin's long-term bullish outlook.
One of the most interesting aspects of Bitcoin's position is how it relates to shorter-term moving averages. A bullish crossover has occurred as the 20-week SMA crossed above the 50-week SMA. These crossovers have historically preceded extended uptrends in past market cycles.
Last time a similar setup occurred for Bitcoin was before the explosive 2021 rally. Another indication of continuing short- and medium-term momentum is that Bitcoin is trading above the 100-week SMA ($54,930). If Bitcoin maintains this position, the eight-week SMA ($98,960) will serve as the next logical resistance level.
A breakout above this level could open the door to price levels in the six figures. If Bitcoin's price action continues to trade above these key moving averages, the bullish momentum could be cemented. Continuing to rise with strong footholds at $91,000 (20-week SMA) and $74,000 (50-week SMA) could see Bitcoin target the psychological $100,000 level.
As Bitcoin now trades significantly above previous support levels, the market sentiment remains bullish. However, traders should be watching out for any potential drops, as volatility is still a defining characteristic of Bitcoin's price movement. If Bitcoin maintains its respect for these key SMAs, a prolonged bull run may be on the horizon.
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