Bitcoin’s 200-week moving average (200 WMA) has now passed the $52,000 mark.
This essentially means that Bitcoin is likely never going back below the aforementioned level.
The 200 WMA is frequently utilized by traders in order to be able to smooth out years of price data and identify very broad trends.
This level is frequently seen as Bitcoin’s diamond-crusted support level that almost never gets breached.
Has Bitcoin ever dropped below 200 WMA?
Even though the 200 WMA is usually treated as the ultimate bottom, it is worth noting that the leading cryptocurrency has indeed dropped below that key level on several occasions.
For instance, the price of the flagship coin plunged below the key support during the most brutal days of the 2018 “crypto winter.” The cryptocurrency also slipped below the 200 WMA during the infamous “Black Thursday” back in 2020.
However, the instances when Bitcoin dropped below the key moving average would always mark long-term market bottoms.
Conversely, when the Bitcoin price gets overextended above the 200 WMA, it typically tends to reach the top of a specific market cycle.
Bitcoin bucking risk-on trend
In the meantime, Bitcoin is currently trading in the green after recently breaching the $111,000 level earlier today.
The cryptocurrency managed to deviate from US equities, including the tech-heavy Nasdaq 100 index. The stocks are currently in the red amid growing concerns about tariffs and rising bond yields.
However, the leading cryptocurrency is still underperforming gold, which is consistently hitting new record highs.
The cryptocurrency is still down nearly 11% from the record high that was achieved on Aug. 14.
