Foreign media reports that the long-term support level for the Bitcoin market has continued to rise. According to the chart from Look Into Bitcoin, the 200-week moving average, which measures the long-term trend, has now surpassed $65,000. The CEO of Blockstream, Adam Back, shared this data and believes that Bitcoin is unlikely to fall below this level again in the foreseeable future.
200-week moving average reaches a new high
The 200-week moving average is calculated by taking the average of Bitcoin's price over the past four years and is commonly used to observe the long-term trend over a complete cycle. Compared to short-term fluctuations, this indicator is better at reflecting the upward movement in the market's bottom range.
The article mentions that this moving average was around $64,000 in August, and then continued to rise within a month to reach the current level. This indicates that the long-term cost center of Bitcoin is still moving upwards.
Has served as a reference at the bottom on multiple occasions in history.
Historically, Bitcoin has spent most of its time trading above its 200-week moving average. Even during bear markets, prices typically fall below this level for short periods, usually only during periods of significant global market volatility.
Based on this historical performance, market participants who support this model believe that above $65,000 is forming a new long-term support area, rather than just the lower edge of a short-term trading range.
Spot prices remain above the support level.
As of the time of this article's publication, the spot price of Bitcoin was roughly maintained in the range of $76,000 to $77,000, still showing a significant distance from the 200-week moving average. This price difference indicates that the current market price is still above the long-term support level.
The article suggests that if this trend continues, the likelihood of Bitcoin returning to the range of $60,000 to $64,000 will decrease. However, this judgment is mainly based on historical models and market perspectives, and it does not mean that there will be no short-term price fluctuations.
