Key Indicator Suggests Bitcoin Price Could Enter Renewed Bullish Phase as Analyst Eyes $120,000 Mark

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In October, Bitcoin‘s price broke past its 200-day moving average, signaling a bullish trend, and hit an unprecedented peak of over $73,500 last month.

The 200-day moving average is an important signal of long-term trends, and its recent sharp increase suggests robust buying power among investors. This trend is projected to exceed its previous high of $49,452, reached in February 2022, which is currently at $47,909. Meanwhile, Bitcoin is priced at $66,200 based on CoinDesk’s latest report.

In the past, data indicates that Bitcoin’s strongest bull market periods have occurred following the 200-day moving average (SMA) surpassing its previous peak. This pattern was observed in early November 2020, approximately six months after the third halving event. The 200-day SMA exceeded $10,320 around this time, and by mid-April 2021, Bitcoin had seen a substantial increase of nearly five times its previous price to reach $63,800.

Reflecting on the past, the 200-day moving average setting all-time highs in December 2016, about five months following the second Bitcoin halving, signaled an enormous price increase. The cryptocurrency saw a breathtaking 2,000% rise to over $19,000 within just one year. A comparable trend emerged after the first halving in November 2012, which also coincided with the average hitting a new record.

The past performance of Bitcoin’s market cycles doesn’t guarantee future results, but there are some recurring trends. For instance, Bitcoin’s bear markets seem to hit their lowest points around November 2022, and then prices start rising as we approach the beginning of a new halving cycle, which historically leads to a price rally.

A well-known cryptocurrency expert, who correctly called the market low for Bitcoin during the 2018 crypto downturn as reported by CryptoGlobe, now anticipates that Bitcoin will reach a new peak within the upcoming 1-2 weeks.

An analyst shared his prediction that Bitcoin’s peak price in this market cycle could reach around $120,000, as he identified it as being in the fifth wave of a larger trend. However, not all share this optimistic viewpoint. A report from Fidelity Digital Assets stated that Bitcoin is no longer considered undervalued, and now trades at its supposed fair value.

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2024-04-24 04:04