Analysis: Bitcoin Holding Above $81,000 Could Signal End of Bear Market

BlockBeats News, August 25th. Bitcoin surged by about 25% over the past week and briefly rose to near $80,000. However, market analysis believes that the 50-week simple moving average (50W MA) is still a key technical resistance level to determine whether the current bear market has truly ended, with the current average located in the $81,000 to $82,000 range.

Galaxy Research stated that in past bear markets, Bitcoin has had 11 instances where the bear market bottom was formed after reclaiming the 50-week average. If Bitcoin can regain stability above this average by the weekly close, historical experience indicates that the current bear market has likely ended.

Meanwhile, Bitcoin has surpassed the daily 50-day, 100-day, and 200-day moving averages, indicating a significant increase in short-term momentum. Some analysts believe that the low point of this cycle may have been reached. However, due to Bitcoin's 7-day surge of around 25% and a 7-day Rate of Change (RoC) at a rare high over the past five years, historically, such extreme readings have often been followed by short-term pullbacks or consolidation phases rather than a sustained linear uptrend.

The market will now focus on whether Bitcoin can effectively break through and hold above the 50-week moving average to further confirm the trend reversal.