As noted by Blockstream CEO Adam Back, Bitcoin's 200-week moving average (200 WMA) has now surpassed $48,000 for the first time.
It took the 200WMA less than a month to add another $1,000 after initially surpassing $47,000 on May 15.
The widely tracked long-term indicator is frequently used by various markets since it makes it possible to filter out short-term volatility.
The 200WMA also tends to act as a dynamic support level during major markets. On a few occasions, Bitcoin did dip below the aforementioned level during major sell-offs. For instance, this happened during the disastrous March 2020 market collapse. However, such drops tend to be very short-lived, and they usually mark generational buying opportunities.
Hence, it is widely believed that the 200WMA acts as the ultimate price floor for Bitcoin.
In late May, the flagship cryptocurrency reached its current all-time high of $112,000, but it has since given up some of its gains.
As reported by U.Today, various pundits, including Fundstrat's Tom Lee and venture capitalist Tim Draper, believe that Bitcoin could surge to as high a $250,000 this year.
Vladislav Sopov
U.Today Editorial Team