Key Takeaways
- Bitcoin’s price topped $84,257 on Sept. 21, reclaiming its 50-week MA.
- Coinglass recorded $212M in bitcoin short liquidations, lifting crypto’s cap toward $2.9T.
- Alex Thorn says 4 of 5 bear markets bottomed after reclaim; bitcoin’s next test is $87,600.
Technical Milestones Signal Potential Cycle Bottom
Bitcoin’s price crossed the $84,000 mark late Sept. 21 as the top cryptocurrency looked set to start the week building on momentum sparked by the failed CLARITY Act vote. The latest climb came as the cryptocurrency’s price closed the week above the 50-week moving average (MA) for the first time in 45 weeks.
According to Alex Thorn, head of firmwide research at Galaxy, regaining this technical level is a major milestone. “Regaining the 50w MA has historically served as strong confirmation that bear market lows are in,” Thorn noted, pointing out that in four of the last five completed bear markets, the first weekly reclaim above this metric signaled that the bottom was definitively established.
Crypto analyst Ted Pillows echoed similar sentiments regarding key price levels. “If Bitcoin breaks $83,000, the cycle bottom will be confirmed,” Pillows posted on X, adding that he expects a bullish path for the cryptocurrency over the next two to three years.
Market data shows that bitcoin’s price initially peaked at $82,062 around 9:20 p.m. Sunday before strong selling pressure dragged the price down to just under $80,900 less than 45 minutes later. However, another rally saw the bitcoin price gradually rise until it hit another new session high of $84,257 at 4:40 a.m. EST.
On the derivatives market, bitcoin’s surge was especially brutal for traders shorting the cryptocurrency. Coinglass data show that more than $212 million in short bets on bitcoin were wiped out in just an hour, compared with $4 million in long bets.The cryptocurrency’s sudden spike briefly saw its market capitalization tap the $1.65 trillion mark, which in turn helped push the broader crypto economy’s market cap toward the $2.9 trillion mark.
By surpassing $84,000, bitcoin moved closer to not only reclaiming its Jan. 1 price of just under $87,600, but also potentially ending the year with net gains. Since dropping to $58,000 in early July, bitcoin is up 40%, strengthening the argument that the bear market is over.
