Bitcoin’s long-term trend indicators, such as the 200-day and 200-week moving averages, have reached record levels. Anthony Pompliano, the founder of investment firm Morgan Creek Digital, has stated that this situation indicates a strong long-term trend for BTC.
The 200-day simple moving average (SMA) for Bitcoin is currently at an all-time high of $50,178. This important technical indicator, which calculates the closing price of Bitcoin over the last 200 days and smooths out short-term fluctuations, suggests a bullish outlook for the cryptocurrency. According to BuyBitcoinWorldwide, the indicator reached its peak on May 6, 2024.
Pompliano commented on the significance of the 200-day SMA surpassing $50,000 for the first time, emphasizing that despite Bitcoin’s daily price volatility, its long-term upward trend remains strong. He urged investors not to be deceived by Bitcoin’s sideways movement, stating that the long-term trend is as robust as ever.
Pompliano also mentioned the recent entries into Grayscale’s spot Bitcoin exchange-traded fund (ETF), which saw $63 million in inflows on May 3. Since converting from a trust to an ETF in mid-January, GBTC has experienced over $17.5 billion in net outflows. Preliminary data from Farside Investors indicates that the ETF saw an additional influx of $3.9 million on May 6.
In addition to the 200-day SMA, the 200-week moving average is also at an all-time high of just over $34,000, according to price models designed by on-chain analyst Willy Woo. This suggests that the annual trend outlook for Bitcoin is even stronger and more bullish compared to the 200-day SMA.
Furthermore, Bitcoin’s spot price has been consistently trading above the 200-week moving average level since mid-October 2023. The spot prices are also significantly higher than the realized price (RP) indicator, which currently stands at around $29,000. The RP indicator is obtained by dividing the value of all BTCs at their last on-chain transaction price by the circulating BTC supply.
It is important to note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
