Bitcoin’s Key Technical Averages Point to Solid Market Support as Prices Consolidate
Bitcoin is holding steady in a consolidation phase, with technical indicators suggesting a strong underlying market structure. A critical long-term average is nearing a significant milestone, hinting at ongoing investor confidence.
According to Glassnode data, Bitcoin’s 200-Week Simple Moving Average (200WMA) has climbed to about $49,223 and is closing in on the $50,000 level. This metric is one of the few in Bitcoin’s history that has consistently trended upward, signaling the asset’s sustained long-term growth.
Historically, the 200WMA has provided crucial support during major bear markets. It held as a floor near $200 in 2015, remained above $3,000 during the 2018 downturn, and only briefly dipped in the March 2020 crash, when Bitcoin temporarily fell to around $5,300, although lows reached as far as $3,000.
However, Bitcoin faced significant pressure from June 2022 to October 2023, spending about 15 months below the 200WMA, which hovered near $25,000 during that period.
Meanwhile, the 200-Day Simple Moving Average (200DMA)—a widely watched indicator used to assess broader market trends—currently stands at $96,246, indicating Bitcoin is still in bullish territory. Although Bitcoin slipped below this average briefly between February and April, it held above the level during its recent drop to $98,000 amid heightened tensions between Iran and the United States.
Historically, the 200DMA has been a reliable gauge of market sentiment. As the Nasdaq 100 and S&P 500 continue to notch fresh record highs, this broader market momentum could help pave the way for Bitcoin to challenge its own previous peaks.
