A key bitcoin indicator, based on the 50- and 100-week moving averages, has accurately marked every bear market bottom since 2015, but it has yet to trigger as of April 17. This signal, which occurs when the 50-week average falls below the 100-week average, has historically indicated the end of bear markets and subsequent price rallies. Currently, bitcoin’s price has declined from its October 2022 high of over $126,000 to around $75,000, suggesting that the broader bear market may still be in play.
The absence of this crossover signal implies that the recent bounce in bitcoin’s price could be a temporary recovery rather than the onset of a new bull market. This situation is particularly relevant as institutional demand for Bitcoin ETFs may increase if U.S. equities continue to rise, potentially providing support for bitcoin prices.
Market professionals should closely monitor this indicator, as its historical reliability suggests that the current downturn may not have reached its conclusion, warranting caution in trading strategies.
Source: coindesk.com