Bitcoin is showing technical indications of a price recovery as longer-term moving averages are slowly moving forward. The weekly moving average chart is showing that the asset is moving above WMAs, with the 50-week SMA sitting at $74,890 and the 20-week SMA at around $91,070.
In the past, BTC has indicated a strong bullish phase when its price levels remain above these indicators. In past bull markets, the 20-week SMA has been a dependable level of support that allowed for additional price growth. The 200-week SMA, which is at $44,580 right now, is still an important macro-level support.
Bitcoin has historically recovered from this moving average during bear markets, indicating that its fundamentals are still sound. Bitcoin‘s long-term bullish outlook is further supported by the widening gap between the price and the 200-week SMA. In comparison to shorter-term moving averages, Bitcoin’s position is among the most noteworthy developments.
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With the 20-week SMA surpassing the 50-week SMA, a bullish crossover has occurred. In past market cycles these crossovers have come before protracted uptrends. A similar setup for Bitcoin last occurred prior to the 2021 explosive rally. A further indication that the short- and medium-term momentum is still positive is that Bitcoin is trading above the 100-week SMA ($54,930). The eight-week SMA ($98,960) is the next logical resistance level if Bitcoin holds this position.
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A break above this might open the door to price levels in the six figures. If Bitcoin‘s price action remains above these crucial moving averages, bullish momentum may be cemented. Bitcoin may target the psychological $100,000 mark if it continues to rise with strong footholds at $91,000 (20-week SMA) and $74,000 (50-week SMA).
Since Bitcoin is currently trading well above previous support levels, market sentiment is still positive. Traders should be on the lookout for any possible declines though as volatility is still a defining characteristic of Bitcoin’s price movement. A protracted bull run may be imminent if Bitcoin keeps up its respect for these important SMAs.
