Bitcoin price This week started on a high note In what was an unprecedented move for many market participants. After spending the first days of October frustrating investors, the price of Bitcoin has soared It raked in over $66,000 For the first time in several weeks.
Interestingly, this price action saw the price of Bitcoin rise again It is approaching a critical technical level With a 200 day moving average. Historically, a break above this key indicator has signaled the beginning of explosive rallies, which often lead to parabolic price increases. The question now is can Bitcoin repeat this historical pattern and ignite another massive boom?
Bitcoin price is approaching the 200-MA. What does this mean?
The 200-day moving average provides a clear view of the asset in the long term. A break above the 200-day moving average indicates that the cryptocurrency is now trading with a positive spread compared to the 200-plus day moving average. For Bitcoin in particularThis indicator has often served as a turning point between bullish and bearish sentiment for its price.
Cryptocurrency analyst Ali Martinez I noticed that In the past, a Bitcoin price break above the 200-day moving average has consistently marked the start of a parabolic uptrend. The last three times, Bitcoin price has broken above the 200-day moving average in each parabolic bullish wave. The first time was in 2016, which saw Bitcoin continue to rise by 7,513% which continued for almost two years.
Once again, in 2021, Bitcoin price broke above the 200-day MA for the second time, leading to a 705% price increase that peaked in April 2021. More recently in 2023, Bitcoin price broke above the 200-MA for the third time. . time, resulting in another significant rise in prices. This time, Bitcoin saw a 275% increase from the breakout level.
These previous examples show the importance of the 200-day moving average for bullish price movement. The recent price action has seen Bitcoin price rise slightly above the 200-day moving average again, which is currently located around $65,844. Hence, this price point has now become a major point of interest for both bullish and bearish traders.
What’s next for BTC price?
Bitcoin price It reached $66,000 Over the past 24 hours, though, it has rebounded slightly and is now trading just below it. A reconfirmation above the $66,000 level would finally trigger a breakout of the 200-day EMA and possibly trigger another bullish rally.
As Bitcoin attempts to break through this key level, all eyes are on whether it can repeat the parabolic moves seen in previous sessions. However, price returns have been reduced each time during the last three breakouts.
However, even a return of 100% to 150% would translate into a target price of between $132,000 and $165,000 from the current price. Bitcoin can also easily break out of the 200-day moving average and reach these price points quickly, especially with Increasing institutional flows Through Bitcoin ETFs.
Featured image created with Dall.E, chart from Tradingview.com