thecryptobasic.com
The ongoing bullish momentum in the crypto market is gaining strength, with analysts highlighting on-chain indicators that suggest a sustained uptrend for Bitcoin.
On-chain analysts like Ali Martinez draw insights from Bitcoin’s historical trends around its 200-day moving average. In a Monday post on X, he noted that Bitcoin is again attempting to surpass this key moving average.
Martinez emphasized that in the past three instances when Bitcoin broke above the 200-day moving average, it led to massive parabolic bull runs.
Notably, the 200-day moving average is an important technical indicator that represents the average closing price of Bitcoin over the last 200 days. It is often considered a major trend line for identifying long-term momentum shifts.
The accompanying historical chart illustrates three instances—2023, 2021, and 2017—where Bitcoin broke above this line (indicated by the red line in the charts below). In each case, the price surged significantly after the breakout, entering parabolic bull runs with massive percentage gains.
Bitcoin’s Parabolic Gains Following Each 200-Day MA Breakout
According to Martinez’s chart, the most recent breakout above the 200-day moving average occurred around May 2023. This resulted in a remarkable 274.79% gain as the price surged from approximately $19,400 to over $73,000 by March 2024.
Similarly, in the 2021 cycle, Bitcoin’s breakout above this moving average led to an impressive 704.94% increase, adding $55,690 to its price. The 2017 cycle saw an even more dramatic outcome, with the breakout resulting in an extraordinary 7,513.24% rally, taking the price from around $240 to over $20,000.
These instances confirm the significance of the 200-day moving average in marking the beginning of Bitcoin’s parabolic runs in the past.
In an earlier update, Martinez noted that Bitcoin made an initial attempt to surpass the 200-day MA but faced rejection. However, the leading crypto asset is now making another attempt with its current sustained price gains.
Bitcoin Uptrend in Motion
Bitcoin is currently trading at $65,396, reflecting a 2% gain over the past day and a cumulative seven-day gain of 4.77%.
Martinez has highlighted that Bitcoin could be headed for new highs of around $78K as it has overcome crucial resistance and support targets.
Additionally, prominent market watchers like CryptoQuant founder Ki Young Ju are also bullish on Bitcoin. Young Ju shared on-chain indicators suggesting Bitcoin could withstand short-term selling pressure, preventing significant price dips and paving the way for higher highs.