Bitcoin breaks through key 200MA, historical trends indicate the bull market has begun
Bitcoin continues to surge, rising from 8,238 USD on January 24 to a recent high of 9,578 USD, breaking through the key 200-day moving average (MA). According to historical price charts, Bitcoin breaking through the 200-day MA signifies the arrival of a new bull market.
Table of Contents
- In 2012, 2015, and 2019, all broke through the 200-day moving average (MA)
- On January 10, it once again stabilized above the 200-day MA
According to the historical trend of Bitcoin, breaking through the 200-day MA is a catalyst for an upward trend. Since the birth of Bitcoin, this has only happened three times, and each breakthrough has brought astonishing price surges.
200 Moving Average
According to a report analysis, Bitcoin first broke through the 200-day MA in 2012. Bitcoin surged from $4.82 on March 5 to $1,177 on November 13, 2013, a 243-fold increase.
The second time occurred in October 2015, when Bitcoin entered a parabolic trend again, with the price surging 79 times. It hit a historical high of $19,765 in December 2017 from $247 in December 2016.
After the bear market of 2018, Bitcoin broke through the 200-day MA for the third time on April 2, 2019. Although the price did not exhibit an exponential rise, it still achieved a 182% increase, reaching an annual high of nearly $14,000 on June 26, 2019.
Always prioritize risk awareness
Although breaking above the 200-day MA sets the foundation for an upward trend, Bitcoin may still experience a pullback and fall below the moving average. As shown in the image below on September 3 last year, Bitcoin had already crossed the 200-day MA but then faced a significant pullback.
Looking at Bitcoin's historical trend, investors must understand that crossing the 200-day MA does not guarantee a bull market with 100% certainty. Risk management remains crucial, and as Bitcoin once again breaks through the 200-day MA in the recent upward trend, will history repeat itself?
Further Reading
- Are mainstream platform coins ideal investment targets? Three major platform coins outperformed Bitcoin last year
- Author of "Principle": Bitcoin's volatility is too high, gold will become a safe haven asset during economic downturns
Join now to get the most comprehensive financial technology information, blockchain insights, and industry examples!
Related
- Meng Yan: The bull market has begun, A-shares are just the beginning, the altcoin season will depend on the outcome of the US election.
- Controversial market maker DWF to launch multi-asset collateralized stablecoin offering varying annual yields
- Ignas: Korean projects repeatedly create bullish market miracles, optimistic about Story sparking another trend