Bitcoin’s long-term trend indicators, such as the 200-day and 200-week moving averages, are currently at record highs. Anthony Pompliano, the founder of investment firm Morgan Creek Digital, believes that this indicates a strong long-term trend for Bitcoin.
The 200-day simple moving average (SMA) for Bitcoin has reached an all-time high of $50,178. This key technical indicator, which calculates the average closing price of Bitcoin over the last 200 days, provides insight into long-term price trends. When the price is above this average, it suggests a bullish trend, while prices below indicate the opposite.
Pompliano spoke about the significance of the 200-day SMA surpassing $50,000 on CNBC’s Squawk Box. He emphasized that despite Bitcoin’s daily price volatility, the long-term trend remains strong. He warned against being lulled by Bitcoin’s sideways movement and reaffirmed the positive outlook.
Additionally, Pompliano mentioned that Grayscale’s spot Bitcoin ETF experienced its first entries on May 3. Since transitioning from a trust to an ETF in January, GBTC has seen significant outflows, but recent entries suggest a reversal. Preliminary data shows that the ETF had an additional entry of $3.9 million on May 6.
The 200-week moving average, which is a longer-term trend indicator, is also at a record high of over $34,000 according to on-chain analyst Willy Woo. This further supports the bullish outlook for Bitcoin’s annual trend compared to the 200-day SMA.
On the other hand, Bitcoin’s price has been trading above the 200-week moving average since mid-October 2023. Spot prices are also significantly higher than the realized price indicator, which is around $29,000. The realized price is calculated by dividing the value of all BTCs at their last on-chain transaction by the circulating BTC.
It’s important to note that the information in this article should not be considered investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.
