Bitcoin Approaches Key Historical Buying Level, Says Kraken Economist
- Bitcoin (BTC) is currently trading at $63,900, above the 200-week simple moving average (SMA) of $62,358.
- BTC dipped below its 200-week SMA twice in the past two weeks but closed above it each time.
- Since mid-2017, closes below this level have occurred on only about 10% of trading days.
- Historically, buyers at this level have seen median returns exceeding 113% over one year and 313% over two years.
The 200-week SMA serves as a significant indicator for traders looking for long-term trends in Bitcoin’s price movements. The rarity of closes below this level emphasizes its importance as a potential entry point for investors.
With BTC showing resilience above the critical 200-week SMA, historical data suggests that buying at or below this level could yield substantial returns, averaging over 113% within a year.
