Bitcoin breaks key moving averages for the first time since 2022, with historical data showing extended consolidation phases often follow.
For the first time since 2022, Bitcoin has moved below its major moving averages, changing its long-standing technical structure.
Historical data shows that such shifts often mark the start of extended adjustment phases rather than isolated price events.
Bitcoin Breaks Key Moving Averages
Bitcoin recently traded below its 50-day, 100-day, and 200-day moving averages. This alignment has not occurred since the 2022 market downturn.
Technical analysts often treat these averages as core trend indicators, and breaks below them usually reflect weakening momentum.
Historical price records show that similar structures appeared during past correction cycles.
These periods followed strong rallies and preceded longer consolidation phases.
Market data suggests that price weakness tends to persist while Bitcoin remains under these averages.
Blockchain data providers note that volume patterns have also shifted. Spot market selling has increased, while leveraged positions have reduced.
This behavior often appears when traders move from risk exposure toward capital preservation.
Historical Patterns After Structural Breaks
Previous cycles show that Bitcoin often enters prolonged accumulation phases after losing major technical support.
In 2018 and 2022, price movement slowed for months before a clear recovery formed. These periods involved range-bound trading and reduced volatility.
On-chain indicators from those cycles showed steady wallet growth despite falling prices.
Long-term holders increased balances gradually, while short-term traders exited positions. This pattern suggests redistribution rather than broad market exit.
Market sentiment data from prior cycles also shifted during these phases. Fear-based metrics stayed elevated for extended periods, while optimism remained limited.
Price recovery only followed after sentiment stabilized and selling pressure declined.
Related Reading: BTC Selling Pressure Fades as Binance Inflows Fall Below 2020 Levels
Accumulation Behavior and Capital Management
Data from past cycles shows that gradual accumulation often occurred during sustained weakness.
Weekly dollar-cost averaging appeared frequently in historical wallet activity. This approach spread entry points over time and reduced timing risk.
Market data also shows that early accumulation phases can last many months. Price often revisited similar levels several times before forming higher lows.
Capital deployment during these periods remained uneven and measured.
Analysts tracking sentiment indexes note that deeper accumulation usually coincided with negative news coverage.
Regulatory concerns, macro pressure, and market stress dominated narratives during those periods. Price action responded later, after behavior and positioning shifted.
Bitcoin’s current structure matches several earlier correction phases. Historical records show that market behavior changes before price trends reverse.
Data continues to guide strategy decisions more consistently than short-term narratives.
Source: https://www.livebitcoinnews.com/bitcoin-breaks-major-technical-support-history-shows-what-comes-next/
