Blockstream CEO Adam Back has noted that Bitcoin's 200-week moving average (WMA) has now moved above $43,000.
The significance of this new milestone stems from the fact that it is very rare for Bitcoin to dip below its 200 WMA, even during the most severe bear market corrections. The "Black Thursday" sell-off that took place in March 2020 is one of very few cases when bulls failed to defend this ironclad support.
Hence, the 200 WMA is widely considered to be the "floor price" for the leading cryptocurrency that tends to mark "generational bottoms."
Back has predicted that it is "very likely" that one will never be able to buy Bitcoin below the $43,000 level, even at the very bottom of the next bear market, if history is any guide.
Bitcoin's underwhelming price action
According to CoinGecko data, Bitcoin is currently trading at $94,838 after briefly dipping below the $90,000 level on Monday.
Yesterday, spot Bitcoin exchange-traded funds (ETFs) also recorded a total of $284 million worth of outflows, which likely contributed to the severe price drop.
According to cryptocurrency analytics firm Sentiment, the long-term Bitcoin outlook remains "semi-optimistic" despite the somehow underwhelming price action that has emboldened the bears.
As reported by U.Today, business intelligence firm MicroStrategy recently announced its 10th consecutive Bitcoin purchase, positively affecting sentiment.
Still, it has been nearly a month since Bitcoin reached its current all-time high of $108,135 on Dec. 17.
Dan Burgin
Vladislav Sopov