Bitcoin rose about 25% last week, reaching the $80,000 mark, raising questions about whether the market has exited the bear market and begun a new bull trend.
At this point, Galaxy Research analysts have identified a critical level that could signal a bull or bear market. According to Galaxy Research analysts, Bitcoin's return to its 50-week simple moving average could be a key signal for the end of the current bear market.
Bitcoin's Critical Level: $81,000!
At this stage, analysts noted that Bitcoin's 50-week simple moving average is around $81,087 and stated that this level is very important for $BTC.
Galaxy Research analysts, after analyzing past Bitcoin bear markets, pointed to notable statistics. According to their data, in 11 out of 13 completed bear markets, Bitcoin had already reached its low point by the time it recovered to its 50-week moving average.
Therefore, analysts believe that if Bitcoin closes on the weekly chart above this level, the current bear market could well be over.
In other words, following the recent rally, $BTC is in the $81,000-$82,000 range. However, to say the bear market is over or a bottom has been reached, it is crucial for Bitcoin not only to surpass this level on the daily chart but also to sustain above it on the weekly chart.
In conclusion, according to Galaxy Research, if historical data holds, a weekly close above roughly $81,000 for Bitcoin could be a convincing signal that the current move is part of a larger trend reversal, not merely a reaction to the rally. Therefore, Bitcoin surpassing the $81,000 mark and closing the week above it will become one of the most closely watched market indicators in the coming period.
*This is not investment advice.
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