The Bitcoin 200-day moving average has reached a record high of $50,178, indicating a positive long-term outlook for the cryptocurrency. This indicator reached its peak on May 6th, following a dip in Bitcoin’s price after the halving of block rewards on April 20th.
The 200-day simple moving average (SMA) is calculated by summing the closing prices of Bitcoin over the last 200 days and dividing it by 200. This helps to smooth out short-term price fluctuations and provides traders and analysts with a long-term trend indicator. When Bitcoin’s prices are trading above this indicator, as they are now, it suggests a bullish long-term trend. Conversely, when prices drop below the 200-day moving average, it indicates a bearish trend.
Speaking on CNBC’s Squawk Box, Bitcoin enthusiast Anthony Pompliano highlighted the significance of the 200-day moving average crossing $50,000 for the first time. He urged investors not to be complacent despite Bitcoin’s recent sideways movement, emphasizing that the long-term thesis for Bitcoin remains robust.
In addition to the 200-day moving average, analyst Willy Woo’s WooCharts price models show that the 200-week moving average, a much longer-term trend indicator, has also reached an all-time high of just over $34,000. This further reinforces the bullish outlook for Bitcoin’s yearly trend.
Bitcoin’s price surpassed the 200-week moving average in mid-October and has remained above it ever since. Furthermore, spot prices are considerably higher than the realized price (RP) indicator, which stands at around $29,000. The RP is calculated by dividing the value of all Bitcoin at their last on-chain transaction by the number of BTC in circulation, providing another long-term trend indicator.
Although the shorter-term 50-day moving average has slightly declined since its peak in mid-April, when Bitcoin reached its all-time high in mid-March, the overall sentiment remains positive.
Anthony Pompliano also mentioned that the Grayscale spot Bitcoin exchange-traded fund (ETF) experienced its first inflows on May 3rd. After witnessing net outflows of over $17.5 billion since its conversion from a trust to a spot ETF in mid-January, the fund received an inflow of $63 million. Preliminary data from Farside Investors also indicates that the fund had a smaller inflow of $3.9 million on April 6th.
The momentum in Bitcoin’s price and investor interest continues to grow, with hip hop stars also showing their enthusiasm for cryptocurrency.