Bitcoin may have formed a new key support level in the current bull market.
In an X post on Monday, February 17, prominent Bitcoin analyst “Wicked” highlighted that the asset’s 200-day moving average had passed the $80,000 price level for the first time. Specifically, at the time of writing, the 200 DMA is at $80,343.61.
The 200 DMA is an indicator highlighting Bitcoin’s average closing price over the past 200 days. It is often used as a trend indicator; the asset is believed to be in a firm uptrend if trading above it and in a downtrend if trading below it.
Depending on the scenario, it can serve as strong support or resistance. In the latest instance, having broken above the $80,000 mark, this level is now expected to serve as strong support.
But that does not mean Bitcoin cannot trade below the level in a bull market cycle. While the asset largely trades above the 200 DMA in a bull market, it has been known to sometimes still trade below it for a few months at a time within the cycle.
The most recent example of this is between August 2024 and October 2024, where the asset briefly traded below the level before breaking out to reach all-time highs at $109,000.
Meanwhile, the 200-week MA, often considered an even more important level to watch, is currently at the $44,411 price point.
The recent development aligns with a report from Glassnode suggesting that Bitcoin’s next major line of defense below $96,000 could be the $80,100 price level. Glassnode arrived at this conclusion, citing the market value realized value (MVRV) Z-score optimized for a one-year rolling window, which is used to identify market extremes.
The development comes as Bitcoin’s price trajectory has remained uncertain in recent weeks. It has bounced between the $90,000 price point and its all-time high of about $109,000 due to macroeconomic headwinds stemming from inflation concerns and, most recently, President Donald Trump’s trade tariffs.
In the past two weeks, this range has become even tighter, with the asset trading between $95,000 and $99,000, leading some to speculate that an impulsive price move is on the horizon.
Bernstein analysts have noted that the next leg up is around the corner, citing the push to establish a strategic Bitcoin reserve in the U.S. On the other hand, CryptoQuant has warned that we could be at the start of a bearish market phase, citing an increased flow of Bitcoin from derivative trading venues to spot, indicative of risk-off sentiment.
