The 200-Week Simple Moving Average (200WMA) for bitcoin BTC is approaching $50,000, currently sitting at approximately $49,223, according to Glassnode data.
This is one of the very few indicators in bitcoin that has only risen over time. The 200WMA has historically provided significant support levels. During the 2015 bear market, it offered support around $200. During the 2018 bear market, it held above $3,000. In the covid-19 induced crash of March 2020, the price briefly dipped below the 200WMA to around $5,300, although it eventually fell as low as $3,000.
However, bitcoin experienced a prolonged bear market from June 2022 to October 2023, during which the price remained below the 200WMA, which was approximately $25,000 for those 15 months.
Meanwhile, the 200-Day simple moving average (200DMA), a widely used technical indicator to gauge transitions between bull and bear markets, currently sits at $96,246, indicating that bitcoin is in a bull market. The price dipped below the 200DMA between February and April but remained above it during the recent correction to $98,000 amid the Iran and US conflict.
Historically, this average has proven to be a strong indicator of both bull and bear market conditions. While the Nasdaq 100 and S&P 500 are making new all-time highs, this momentum can be constructive for bitcoin to achieve a breakout to new all-time highs as well.