Bitcoin Surpasses 50-Week Moving Average as Galaxy Research Signals Potential Bottom

Bitcoin (BTC) has surpassed its 50-week moving average. Galaxy Research analysts note that if the weekly closing price remains above this level, it could signal the bottom of a bear market. Bitcoin's current price stands at approximately $88,760 (around ₩111.69 million), while the 50-week moving average is about $79,456 (approximately ₩109.73 million). Alex Thorn, Galaxy Research's chief analyst, stated that Bitcoin has shown strong momentum after crossing above the 50-week line and emphasized monitoring the weekly close on August 20 to confirm trend reversal.

The 50-week moving average is a technical indicator calculated from Bitcoin's average price over the past 50 weeks. Whether prices settle above this level on a weekly basis serves as a key benchmark for medium-term trends. Galaxy Research highlighted that in four out of five completed bear markets, the bottom was confirmed after the first upward breakout of the 50-week moving average. However, not all cases followed this pattern; during the 2021-2022 bear market, prices dipped lower again after breaking above the indicator.

Galaxy Research previously noted in a report dated August 28 that the 50-week moving average could serve as a resistance level for bear market tops. The firm reiterated that a weekly close above this line would be a strong signal of a bear market bottom. Current price action has moved beyond the indicator, shifting focus to whether Bitcoin maintains its position above the 50-week average at next week's closing.

Weekly closes refer to the price point at the end of a trading week, not intraday movements. A brief breakout without sustained weekly closing above the line does not confirm trend reversal. Galaxy Research stressed that while this breakout is significant, it does not definitively signal the end of the bear market, with August 20's weekly close being the next key confirmation point.