As noted by Blockstream CEO Adam Back, Bitcoin’s 200-week moving average (MA) has surpassed the $40,000 level for the first time.
#bitcoin 200wma crossed $40k today. pic.twitter.com/yXcXo1mGmW
— Adam Back (@adam3us) October 19, 2024
The leading cryptocurrency is currently changing hands at $68,352.
“Up only”
The 200MA level has always been treated as the price floor for the largest cryptocurrency if one takes out volatility.
In face, Bitcoin has never had a monthly close below the aforementioned level even during its most severe price corrections.
It is worth noting that the flagship cryptocurrency did plunge below the 200 moving average on several occasions. For instance, it briefly collapsed below during “Black Thursday,” the massive 50% crash that took place in March 2020.
However, apart from a few “black swan” events, the bulls have managed to reliably defend the key price level.
This is why it is highly unlikely that one will have another opportunity to buy the flagship cryptocurrency below the $40,000 level.
Key level for bulls
According to Josh Olszewicz, a popular chartist, the $71,200 level is the key resistance for Bitcoin bulls based on Bollinger Bands.
For a bullish trend to resume, the largest cryptocurrency would need to score a weekly close above the aforementioned level.
As reported by U.Today, the Bitcoin price briefly reclaimed the $69,000 level on Friday.
However, it remains to be seen whether the most recent rally is not just a flash in the pan.
Polymarket bettors currently see a 70% chance of Bitcoin hitting the $70,000 level in October. There is also a 73% chance of Bitcoin hitting another all-time high in 2024.
