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, stated that this situation indicates a strong long-term trend for BTC.
The 200-day simple moving average (SMA) for Bitcoin has reached an all-time high of $50,178. This important technical indicator, which predicts long-term price trends, suggests a bullish outlook for Bitcoin. According to BuyBitcoinWorldwide, the indicator reached its peak on May 6, 2024.
The 200-day SMA calculates Bitcoin’s closing price over the past 200 days, smoothing out short-term fluctuations and providing traders and analysts with a long-term trend indicator. When Bitcoin’s price is above this indicator, it typically signifies an upward trend, while prices below the 200-day moving average indicate the opposite.
During an appearance on CNBC’s Squawk Box, Pompliano commented on the 200-day SMA surpassing $50,000 for the first time, stating, “Despite Bitcoin’s daily price volatility, its long-term upward trend remains strong. Don’t be deceived by Bitcoin’s sideways movement. The long-term trend is as robust as ever.”
Pompliano also mentioned that Grayscale’s spot Bitcoin exchange-traded fund (ETF) had its first entries on May 3. Since transitioning from a trust to a spot ETF in mid-January, GBTC has experienced over $17.5 billion in net outflows. However, it saw $63 million in entries on May 3, and this momentum is continuing. Preliminary data from Farside Investors indicates that the ETF had an additional entry of $3.9 million on May 6, albeit smaller.
Additionally, the 200-week moving average, a much longer-term trend indicator, is also at an all-time high of just over $34,000, according to price models created 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.
On the other hand, Bitcoin’s price surpassed the 200-week moving average level in mid-October 2023 and has been trading above it since then. Spot prices are also significantly higher than the realized price (RP) indicator, which is 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, and it serves as another long-term trend indicator.
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 associated risks of cryptocurrencies and should conduct their own research.
