Bitcoin May Never Drop Below $48,000
Bitcoin's 200-Week Moving Average Has Now Surpassed $48,000
Blockstream CEO Adam Back pointed out that Bitcoin's 200-Week Moving Average (200 WMA) has now, for the first time, exceeded $48,000.
The 200 WMA increased by $1,000 in less than a month after first breaking through $47,000 on May 15.
This widely tracked long-term indicator is often used across various markets as it filters out short-term fluctuations.
In major markets, the 200-Week Moving Average often acts as a dynamic support level. During several significant sell-offs, Bitcoin did drop below this level. For example, this occurred during the disastrous market crash in March 2020.
However, such declines are often very brief and typically mark a generational buying opportunity.
As a result, the 200 WMA is generally considered Bitcoin's ultimate price floor.
By the end of May, this flagship cryptocurrency reached its current all-time high of $112,000, but has since retraced some of its gains.
