The mood in the crypto market has recently become more positive again after bitcoin (BTC) managed to post a nice increase. Blockchain analytics platform Glassnode notes that this increase marks “a fascinating and bizarre degree of consistency” compared to the previous cycle.
Bitcoin price back above the 200-day MA
Bitcoin traders use all sorts of tools to spot patterns and other signals on the charts. One of them is the moving average (MA). This is an indicator that consists of the average price over a certain period.
For example, if we take the 50-day MA, you can see what the average bitcoin price was over the past 50 days. Glassnode, a platform that brings together many of these types of indicators on charts, recently shared a striking chart on Twitter. It shows that BTC is trading above the 200-day MA again.
Now that in itself is not so special. What is special according to Glassnode is the moment it happened. It took bitcoin 381 days to rise above this MA again. The previous period it cost the bulls 386 days.
The end of the bitcoin bear market?
It is no secret that markets move in cycles. However, it is impossible to predict how long a cycle will last and how deep it will be. However, Glassnode notes that based on the 200-day MA, the cycle is very consistent. In the tweet, Glassnode writes:
“Bitcoin markets display a fascinating and bizarre level of consistency between cycles.”
Whether this actually means that the bear market is over, as was the case in April 2019, remains to be seen. Bitcoin has been trading above the 200-day MA at $19,500 for several days but is still struggling to break the current resistance level at $21,000.
And as always, past performance is no guarantee for the future. However, the development is finally a glimmer of hope in a period that has been particularly difficult for many crypto investors and enthusiasts.