Bitcoin has closed above its 50-week moving average for the first time in 45 weeks, a technical development that could signal the end of its bear market.
The cryptocurrency was trading at about $81,450 after rising by nearly 6% during the week. It has gained 29% over the past 35 days, strengthening the recent recovery.
The 50-week moving average is being closely watched because Bitcoin has avoided making a new low after 11 of its previous 13 weekly moves above that level. Its latest close above the average therefore represents a significant bullish signal.
However, the outlook will depend on whether Bitcoin can hold above the level, which is currently about $78,115. A sustained move above that point would support the view that the market has moved beyond its recent weakness, while a failure to remain above it would weaken the signal.
The latest rise comes after traders had faced renewed concern over the direction of the cryptocurrency market. Bitcoin’s move above $81,000 has placed attention on whether its recovery can continue following the sharp gains recorded over the past month.
