The 200-day moving average for Bitcoin has reached a record high of $50,178, serving as a crucial technical indicator for predicting long-term price trends and indicating a positive outlook for the cryptocurrency. This milestone was reached on May 6, as reported by BuyBitcoinWorldwide. It comes after Bitcoin experienced a price dip following its halving event, dropping to as low as $56,800 on April 20 when the block rewards were reduced to 3.125 BTC.
The 200-day simple moving average (SMA) is calculated by summing the closing prices of Bitcoin over the past 200 days and dividing it by 200. This helps to smooth out short-term price fluctuations and provide traders and analysts with a long-term trend indicator. When Bitcoin’s prices are trading above this indicator, as they are currently, it typically suggests a bullish long-term trend. Conversely, if prices drop below the 200-day moving average, it indicates a bearish trend.
During an appearance on CNBC’s Squawk Box on May 6, Bitcoin enthusiast Anthony Pompliano commented on the 200-day moving average surpassing $50,000 for the first time. He warned against being complacent due to Bitcoin’s recent sideways movement and emphasized that the long-term thesis for Bitcoin remains strong.
According to analyst Willy Woo’s WooCharts price models, the 200-week moving average, which is a much longer-term trend indicator, has also reached an all-time high of just over $34,000. This further reinforces the bullish outlook for Bitcoin in the coming year. Bitcoin crossed the 200-week moving average level in mid-October and has remained above it ever since. Additionally, spot prices are significantly higher than the realized price (RP) indicator, which is currently around $29,000. The RP indicator calculates the value of all Bitcoin based on the price at which they were last transacted on-chain, divided by the total number of BTC in circulation.
While the shorter-term 50-day moving average has slightly dipped since its peak in mid-April, when Bitcoin reached its all-time high in mid-March, the overall momentum for the cryptocurrency remains positive.
Pompliano also highlighted that the Grayscale spot Bitcoin exchange-traded fund (ETF) saw its first inflows on May 3. After experiencing net outflows of over $17.5 billion since its conversion from a trust to an ETF in mid-January, the fund received an inflow of $63 million. Preliminary data from Farside Investors also suggests that the fund had a smaller inflow of $3.9 million on April 6.
In conclusion, Bitcoin’s 200-day moving average reaching a record high and the positive performance of other long-term trend indicators, such as the 200-week moving average, indicate a bullish long-term outlook for the cryptocurrency.