Bitcoin Closes Above 50-Week Average After 29% Surge
Bitcoin Closes Above 50-Week Average After 29% Surge
Anonymous
Key Points
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Bitcoin had held above $74,000 for 30 consecutive days, while its 90-day gain stood at 25.8%.
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Analyst Doctor Profit said the 50-week moving average, around $78,700, has marked bull markets in five of seven historical cases.
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The rally occurred despite the Federal Reserve’s unanimous 25-basis-point rate hike—the first such increase since 2023—and was accompanied by Bitcoin rising above $81,700 and Ethereum surpassing $2,600.
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A green monthly close in September would produce three consecutive green monthly candles, a pattern the article says has not occurred during a bear market.
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Analysts emphasize that Bitcoin’s weekly candle closes at 23:59 UTC on Sunday, with a new weekly candle opening immediately afterward; this timing is why a weekly close above a moving average is considered more significant than a brief intraday move.
Bitcoin closed above its 50-week moving average for the first time in 45 weeks, trading near $81,000 after surging 29% over the past 35 days. BigGo Finance reported the milestone as a potential signal that the prolonged downturn may have ended. The cryptocurrency held above $74,000 for 30 consecutive days, while its 90-day gain reached 25.8%.
Analysts view the weekly close as historically significant. CryptoRank noted that similar breakouts in 2012, 2015, 2019, and 2023 preceded extended rallies. In 11 of 13 comparable historical cases, Bitcoin avoided setting a new low after breaking above the 50-week average. However, past performance does not guarantee another bull market will follow.
The Technical Pattern That Signals Bull Markets
The 50-week moving average sits around $78,700 and has marked the start of bull markets in five of seven historical cases, according to analyst Doctor Profit. U.Today emphasized that Bitcoin's weekly candle closes at 23:59 UTC on Sunday, making weekly closes above moving averages more significant than brief intraday moves. A close above this level signals sustained buying pressure, not just temporary spikes.
Some traders are seeking a sustained move above roughly $83,000 before confirming a trend reversal. Grafa reported that Bitcoin gained nearly 6% over the week leading to this milestone. Skeptics warn that failure to hold key support could send the cryptocurrency back toward $60,000, erasing much of the recent recovery.
Three Green Months Would Confirm the Reversal
A green monthly close in September would produce three consecutive green monthly candles for Bitcoin. BloomingBit noted that this pattern has not occurred during a bear market, making it a crucial test of whether the downturn has truly ended. The rally pushed Bitcoin above $81,700 and sent Ethereum above $2,600, showing broad strength across crypto markets.
Fed Rate Hike Failed to Derail the Crypto Rally
Bitcoin's surge occurred despite the Federal Reserve's unanimous 25-basis-point rate increase—the first hike since 2023. U.Today reported that traders expected the rate hike to pressure crypto markets, yet Bitcoin continued climbing. The disconnect suggests investors may be shifting focus away from Fed policy toward other factors driving crypto demand and adoption narratives.
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