Last week, Bitcoin rose by approximately 25%, reaching the $80,000 mark, raising questions about whether the market has exited the bear market and started a new bull trend.
At this point, analysts from Galaxy Research have identified a critical level that could indicate a bull or bear market. According to Galaxy Research analysts, Bitcoin's return to its 50-week simple moving average could be a significant signal for the end of the current bear market.
Bitcoin's Critical Level: $81,000!
At this stage, the analysts noted that Bitcoin's 50-week simple moving average is around $81,087 and stated that this level is very important for $BTC.
Analyzing Bitcoin's past bear markets, Galaxy Research analysts pointed out a notable statistic. According to their data, in 11 out of 13 concluded bear markets, Bitcoin reached its bottom by the time it recovered to its 50-week moving average.
Therefore, the analysts believe that if Bitcoin closes above this level on the weekly chart, the current bear market could very well be over.
In other words, following the recent rally, $BTC is in the range of $81,000–$82,000. However, to say that the bear market has ended or a bottom has been reached, it is extremely important for Bitcoin not only to break through this level on the daily chart but also to remain above it on the weekly chart.
In conclusion, according to Galaxy Research, if historical patterns hold true, Bitcoin closing the week above approximately $81,000 could be a compelling signal that the current movement is part of a larger trend reversal, not merely a reaction to the rally. Therefore, Bitcoin breaking through the $81,000 level and closing the week above it will become one of the most closely watched market indicators in the upcoming period.
*This is not investment advice.
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