Over the past two years, Bitcoin (BTC) has enjoyed a strong positive price performance, rising more than 300% since the start of 2023. In 2024 alone, the cryptocurrency’s market leader has surged 40% in value, reaching an all-time high of $73,750 in March. However, recent price developments suggest that Bitcoin’s bullish price trajectory could see significant changes in the coming months.
The 200-day simple moving average price indicates that the Bitcoin price is at a crossroads.
in X Post Popular cryptocurrency analyst Ali Martinez noted on Saturday that the price of BTC recently fell below its 200-day simple moving average (SMA), indicating that the asset is undergoing a change in price action.
In this context, the simple moving average, one of the most popular trading tools, is used to determine the trends of price data over a specific period of time, such as 200 days. As the name suggests, the indicator represents the average of all price points in the specified period, allowing traders to gauge the overall direction of the market.
Traditionally, when the price of an asset crosses above the simple moving average, it indicates an upward price move, although the fact that the price is expected to rise depends on the time frame of the simple moving average. Alternatively, when the price of a token falls below the simple moving average, this represents a sell signal as the price is expected to fall.
However, Martinez assumes that Bitcoin’s current dip below its 200-day SMA is temporary and represents a buying opportunity for investors, supporting the token’s potential to maintain its current bullish trend. However, if Bitcoin remains below its 200-day SMA for a longer period, the analyst expects such a development to trigger a bear market for the leading cryptocurrency.
Bitcoin Price Overview
based on Data from CoinMarketCapBitcoin is trading at $59,995, down 1.77% in the past seven days. This negative performance underscores the asset’s struggles over the past month, as it lost more than 8% of its value and briefly dipped below $50,000. Despite this, community sentiment towards Bitcoin remains largely bullish, indicating that many investors are backing the token to prove profitable in the long term.
The leading cryptocurrency has been repeatedly speculated to reach six-figure valuations based on historical price data and other factors including the Bitcoin spot ETF market and potential recent changes in the US government’s policy on digital assets. However, Bitcoin’s short-term price targets currently lie at $62,000 and $70,000, both of which represent significant resistance levels for the crypto market leader.
Featured image by Coinmonks, chart by Tradingview