As noted by Blockstream CEO Adam Back, Bitcoin's 200-week moving average (WMA) has now surpassed the $45,000 level.
Over the past three months, the WMA has added roughly $3,000. A year ago, the 200 WMA was at roughly $32,000.
Up-only?
The widely tracked MA is considered to be particularly important since the price of the leading cryptocurrency tends to bottom out at this level. This is due to the fact that this is a slow average that covers four years.
Even though the price of Bitcoin has dipped below the 200 WMA on several occasions during extreme sell-offs, there is still a good chance that Bitcoin might never drop below $45,000 in the future.
Last year, Back stated that he thinks of the 200 WMA as the price floor if one takes out volatility. Notably, the Bitcoin price has never gone below this moving average in a bull market.
Gamza KhanzadaevEarlier this Monday, Bitcoin surged to an intraday high of $88,713. The recent price jump has coincided with the S&P500, the flagship U.S. stock market index, reclaiming its 200-day moving average.
That said, according to CryptoQuant, this is a leverage-driven price pump, meaning that there could be a cascade of liquidations.
Vladislav Sopov
Dan Burgin