Bitcoin's 45-Week Wait Is Over: 50-Week Average Finally Cracked 🚀

Bitcoin has closed above its 50-week moving average for the first time in 45 weeks, a technical threshold analysts at Galaxy Research say has historically marked the end of bear market phases. Galaxy's head of research, Alex Thorn, described the breakout as a potentially important confirmation that the market's bearish stretch may be over and a new uptrend could be underway.

The cryptocurrency traded near $81,450 after gaining nearly 6% during the week ended Sept. 20 and extending its rebound to 29% over the past 35 days. The move pushed Bitcoin's weekly candlestick above the 50-week average rather than merely testing it, a distinction that analysts typically treat as a stronger signal because more weight is placed on a weekly or daily close above a major moving average than on an intraday breach.

The 50-week moving average represents the average weekly closing price over roughly the past year and is often used as a proxy for Bitcoin's long-term trend. Galaxy has previously characterized the level as a ceiling during major drawdowns, noting that once Bitcoin falls below it, attempts to reclaim the average have historically failed until the market approaches a durable low. Successful breakouts above the line, by contrast, have preceded pronounced bull runs.

Galaxy examined major Bitcoin slumps since 2011 and identified 13 instances in which Bitcoin closed a week back above its 50-week moving average during a drawdown. In 11 of those cases, the market did not go on to set a new low, suggesting the worst of the decline had already passed. The January 2012 reclaim following the 2011 crash was among the noteworthy crossovers cited, after which the prior decline was effectively over.

Whether the latest breakout holds depends on Bitcoin's ability to remain above the roughly $78,115 level, which now serves as the line between a sustained recovery and another failed attempt. Bitcoin was last reported changing hands around $81,450, with BTC quoted at $84,061.55 in recent market data.