Galaxy Asset Management's head of firmwide research, Alex Thorn, has declared that Bitcoin's bottom is in, pointing to the cryptocurrency's recent reclaim of its 50-week moving average as the key signal.
50-Week Moving Average Reclaimed
According to Galaxy, Bitcoin closed back above its 50-week moving average in the week of September 20 and has maintained that position. The firm notes that in the four prior instances when Bitcoin reclaimed this average after spending 20 or more weeks below it, the price never closed more than 8.4% below the reclaim level in the following year.
Thorn's call, as summarized by Galaxy, is that "the bottom is in," with the 50-week moving average serving as the central piece of evidence.
Historical Precedent
Galaxy's analysis relies on the pattern of previous reclaims: after prolonged periods below the 50-week moving average, Bitcoin's downside following a reclaim has been limited. The firm cites the 8.4% maximum drawdown from the reclaim level as a historical benchmark, though it does not guarantee future performance.
The views expressed are those of the participants and do not necessarily reflect the official policy or position of BTC Inc., Bitcoin Magazine, or any affiliated entities. This content is provided for informational and educational purposes only and should not be construed as investment, legal, tax, or accounting advice.
