Bitcoin continues to surprise traders as its 200-week average surpasses the $45,000 mark for the first time.
Bitcoin's New Milestone
As noted by Blockstream CEO Adam Back, Bitcoin has reached an important milestone: its 200-week moving average (WMA) has climbed above the $45,000 level. This benchmark is considered key for the cryptocurrency, particularly in light of its rapid growth over the past years.
Significance of the 200-Week Average
Analysts view the 200-week WMA as a critical benchmark since the price of Bitcoin has historically stabilized at this level. The moving average spans four years and often serves as a bottom marker amid extreme volatility in the market.
Market Outlook and Risks
Although Bitcoin has previously dipped below this level during extreme sell-offs, experts believe that the likelihood of it falling below $45,000 remains slight. Nevertheless, recent price jumps may also be linked to temporary speculative activity, potentially leading to a cascade of liquidations, according to CryptoQuant analysts.
Bitcoin's current behavior and its 200-week average highlight the level's significance for assessing the cryptocurrency's resilience. However, possible market fluctuations demand increased attention from investors.
