Bitcoin ‘as strong as ever’ with record high 200-day moving average
Bitcoin’s ( BTC ) 200-day moving average is at an all-time high of $50,178, a key technical indicator for predicting long-term Bitcoin price trends suggesting a bullish long-term outlook.
The indicator hit its peak on May 6, according to BuyBitcoinWorldwide. It comes as Bitcoin recovers from a post-halving price dip that saw it drop as low as $56,800 after the network’s block rewards were halved to 3.125 BTC on April 20.
The 200-day simple moving average ( SMA ) sums the last 200 days of Bitcoin’s closing price and divides it by 200 to iron out short-term price fluctuations, aiming to show traders and analysts a long-term trend indicator.
When BTC prices are trading above this indicator — as it is not — it typically suggests that the long-term trend is bullish, whereas the opposite is the case when prices drop below the 200-day moving average
Speaking on CNBC’s Squawk Box on May 6, Bitcoiner Anthony Pompliano commented on the 200-day moving average crossing $50,000 for the first time.
“Over the long run, Bitcoin continues to trend upward even though on a day-to-day basis that price is volatile.”
“Don’t get lulled to sleep by Bitcoin going sideways. The long-term thesis is as strong as ever,” he added in an X post.
Bitcoin's 200 day moving average just hit a new all-time high.
— Pomp (@APompliano) May 6, 2024
GBTC saw the first day of inflows in 78 days.
Don't get lulled to sleep by bitcoin going sideways. The long-term thesis is as strong as ever.
Here is my segment on @SquawkCNBC this morning. pic.twitter.com/BG6GkzqVIi
According to analyst Willy Woo’s WooCharts price models, the 200-week moving average, a much longer-term trend indicator, is also at an all-time high of just over $34,000 meaning that the yearly trend outlook is even more bullish.
The price of Bitcoin crossed the 200-week moving average level in mid-October and has been above it ever since. Spot prices are also significantly higher than the realized price (RP) indicator which is around $29,000.
The RP is a measure of the value of all Bitcoins at the price they were last transacted on-chain, divided by the number of BTC in circulation and another long-term trend indicator.
Bitcoin 200 WMA all-time. Source: WooChartsHowever, the shorter-term 50-day moving average has dipped a little from its peak in mid-April as BTC dropped from its mid-March all-time high.
Related: Bitcoin price still in ‘prime buy zone’ even with rally to $65K
Pompliano also mentioned that the Grayscale spot Bitcoin exchange-traded fund (ETF) posted its first inflow on May 3.
The fund saw an inflow of $63 million after seeing net outflows of more than $17.5 billion since it was converted from a trust to a spot ETF in mid-January.
The momentum has continued. On April 6 the fund also posted an inflow, albeit a smaller one at $3.9 million, according to preliminary data from Farside Investors.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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