Bitcoin’s 200-day moving average has surged to a record high of $50,178, signalling a bullish long-term outlook, as reported by BuyBitcoinWorldwide on May 6.
This milestone comes amid Bitcoin’s recovery from a post-halving price dip, which saw it drop to as low as $56,800 after the network’s block rewards were halved to 3.125 BTC on April 20.
The 200-day simple moving average (SMA) is a crucial technical indicator that smooths out short-term price fluctuations by summing the last 200 days of Bitcoin’s closing prices and dividing by 200.
Traders and analysts use this indicator to identify long-term trends. When Bitcoin’s price is trading above this indicator, it typically suggests a bullish long-term trend.
Bitcoin advocate Anthony Pompliano shared his insights on CNBC’s Squawk Box, stating, “Over the long run, Bitcoin continues to trend upward even though on a day-to-day basis that price is volatile.”
He cautioned against being misled by sideways price movements, emphasizing that the long-term thesis for Bitcoin remains robust.
“Don’t get lulled to sleep by Bitcoin going sideways. The long-term thesis is as strong as ever,”
he added in an X post.
Analyst Willy Woo’s WooCharts price models further support the bullish outlook, showing that the 200-week moving average, a much longer-term trend indicator, is also at an all-time high of just over $34,000. This indicates a positive trend for Bitcoin’s yearly outlook.
In addition to these indicators, the Grayscale spot Bitcoin exchange-traded fund (ETF) saw its first inflows since mid-January, with $63 million entering the fund on May 3 according to Farside Preliminary data.
This follows a period of net outflows totaling more than $17.5 billion. The fund also saw a smaller inflow of $3.9 million on April 6, according to preliminary data from Farside Investors.
While the shorter-term 50-day moving average has dipped slightly from its peak in mid-April, the overall sentiment remains positive for Bitcoin’s price trajectory.
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