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Bitcoin Demonstrates Robust Health with Record-High 200-Day Moving Average

Unprecedented levels in Bitcoin’s long-term indicators

Bitcoin’s 200-day moving average hits a new all-time high, signaling strong long-term market health amidst recent recovery from a post-halving dip.

Key takeaways:

  • Bitcoin’s 200-day moving average has soared to a record high, suggesting a strong bullish trend in the long-term market outlook.
  • The Grayscale Bitcoin ETF sees new inflows, hinting at renewed investor confidence after a period of significant outflows.

Bitcoin's long-term price indicators, particularly the 200-day and 200-week moving averages, have reached their highest levels ever, pointing to a strong bullish outlook for the cryptocurrency. As of May 6, the 200-day moving average has climbed to an all-time high of $50,178, according to data from BuyBitcoinWorldwide. 

This surge in the moving average comes as Bitcoin recovers from a significant post-halving price dip, where it momentarily dropped to $56,800 following the halving of the network’s block rewards on April 20.

Expert analysis and market sentiments

The 200-day moving average, which is calculated by taking the average of Bitcoin’s closing prices over the last 200 days and smoothing out short-term fluctuations, is widely regarded as a crucial indicator of long-term market trends. With Bitcoin's price consistently trading above this level, the long-term market sentiment remains decidedly bullish. Commenting on this trend, Bitcoin enthusiast Anthony Pompliano spoke on CNBC’s Squawk Box, highlighting the significance of the crossing: 

Pompliano explained:

"Over the long run, Bitcoin continues to trend upward even though on a day-to-day basis that price is volatile,” 

He emphasized the strength of Bitcoin's long-term prospects in a recent X post, urging followers not to be swayed by short-term movements.

Grayscale ETF and additional insights

Further reinforcing the positive outlook, the Grayscale spot Bitcoin exchange-traded fund (ETF), which recently transitioned from a trust, observed its first inflows in 78 days on May 3, with a substantial $63 million. This followed a challenging period since mid-January, which saw net outflows exceeding $17.5 billion. Another day of inflows occurred on April 6, albeit smaller at $3.9 million, suggesting a potential shift in investor sentiment.

Additionally, Willy Woo’s WooCharts price models indicate that the 200-week moving average has also hit a record high of just over $34,000, further underscoring a bullish yearly trend. Since mid-October, Bitcoin’s price has consistently remained above this level. The realized price (RP), another vital long-term trend indicator that measures the average transaction price divided by the circulating supply, is currently around $29,000, significantly lower than spot prices, indicating potential undervaluation according to some analysts.