As noted by Blockstream CEO Adam Back, Bitcoin’s 200-week moving average (WMA) has now moved above $47,000.

It took the cryptocurrency less than a month to add another $1,000 after passing $46,000 

This essentially means that the cryptocurrency is now extremely unlikely to actually drop below the aforementioned level in the future. 

The 200 WMA smoothes out volatility to such a degree that only long-term price trends remain noticeable on the chart. It is generally being treated as the ultimate floor level for the leading cryptocurrency. 

The fact that this iron-clad support has now reached $47,000 does not necessarily mean that Bitcoin will never dip below this level. For instance, the cryptocurrency did dip below its 200 WMA during the infamous March 2020 crash. However, such drops were very short-lived. 

You Might Also Like

Investor psychology is also a major factor to consider, given that the 200 WMA support attracts immense buying interest during severe downturns.

Earlier today, Bitcoin reached an intraday high of $104,002, according to CoinGecko data. The cryptocurrency is up 22% over the past 30 days amid a new wave of institutional interest.