Bitcoin Might Never Drop Below $59K Again

A widely followed technical indicator has just crossed a massive psychological threshold. 

Blockstream CEO and cypherpunk Adam Back recently noted on X that Bitcoin’s 200-week moving average (200WMA) has officially surpassed the $59,000 mark.

The ultimate macro support level

The 200-week moving average is widely viewed as the most crucial “make-it-or-break-it” level for Bitcoin. 

The metric calculates the average closing price of the asset over the previous 200 weeks. 

It smoothes out volatility, which is why it is considered to be highly reliable for tracking long-term trends. 

Historically, the 200WMA has functioned as the line in the sand during brutal bear markets. 

When Bitcoin suffers severe drawdowns from its all-time highs, this moving average has traditionally acted as the bedrock support level.

At this level, institutional and retail accumulation usually takes place. 

Given that the 200WMA has now climbed to $59,000, the bellwether coin is highly unlikely to sustain a price below this newly established floor.

Rare breaches 

The 200-week moving average is generally considered to be the ultimate safety net, but it is not completely infallible. 

Bitcoin has, in fact, crashed below this make-it-or-break-it level on several severe occasions in the past.

The most notable breach occurred during the infamous Black Thursday crash in March 2020. Investors panic-sold assets across the board. 

BTC suffered a violent plunge that sliced directly through the 200WMA, though the asset quickly staged a dramatic V-shaped recovery and reclaimed the level shortly after.

The asset also spent an unprecedented amount of time trading below its 200WMA during the depths of the 2022 bear market.   

With that being said, these historical breaches were anomaly events that marked ultimate cycle bottoms.