Bitcoin Price Is Trying To Break 200-MA That Led To Parabolic Surge In The Past, Will It Succeed Again?

The Bitcoin price began this week on a high in what was an unprecedented move for a lot of market participants. After spending the early days of October to disappoint investors, the Bitcoin price banged over $66,000 for the primary time in lots of weeks.

Interestingly, this price motion has seen the Bitcoin price once more approaching a critical technical level with the 200-day moving average. Historically, breaking above this key indicator has signaled the beginning of explosive rallies, often leading to parabolic price increases. The query now’s can Bitcoin repeat this historical pattern and ignite one other massive surge?

Bitcoin Price Approaches The 200-MA. What Does This Mean?

The 200-day moving average provides a transparent view of an asset in the long run. A break above the 200-day moving average suggests the cryptocurrency is now trading for a positive difference in comparison with a mean over 200 days. For Bitcoin particularly, this indicator has often served as a tipping point between bullish and bearish sentiment for its price.

Crypto analyst Ali Martinez noted that previously, Bitcoin’s price break above the 200-day moving average has consistently marked the onset of parabolic bull runs. The last thrice the Bitcoin price broke above the 200-day moving average each kickstarted parabolic bull runs. The primary time was in 2016, which saw Bitcoin proceed on a 7,513% increase that lasted for nearly two years.

Again, in 2021, Bitcoin’s price crossed above the 200-day moving average for the second time, which led to a 705% price increase that peaked in April 2021. Most recently in 2023, Bitcoin’s price broke above the 200-MA for the third time, sparking one more significant price rally. This time, Bitcoin saw a 275% increase from its breakout level.

These previous instances show the importance of the 200-day moving average for bullish price motion. Recent price motion has seen the Bitcoin price break barely above the 200-day moving average again, which is currently situated around $65,844. Consequently, this price point has now turn out to be a serious focal point for each bullish and bearish traders.

Source: X

What’s Next For BTC Price?

The Bitcoin price reached as high as $66,000 previously 24 hours, even though it has retraced a bit and is now trading slightly below. A reconfirmation above the $66,000 would finally cause a break above the 200-day moving average and potentially kickstart one other bull rally.

As Bitcoin attempts to interrupt above this key level, all eyes are on whether it could possibly replicate the parabolic moves seen in previous cycles. Nevertheless, the worth returns have each reduced time within the last three breakouts.

Nonetheless, even a return between 100% and 150% would translate to a price goal between $132,000 and $165,000 from the present price. Bitcoin could also easily break out of the 200-day moving average and reach these price points quickly, especially with growing institutional inflows through Spot Bitcoin ETFs.