bitcoin It has recently been flirting with a level that has historically proven to be a near-perfect entry point for bulls, generating attractive returns, chief economist at cryptocurrency exchange Kraken, Thomas Perfumo, told CoinDesk.
That level is the 200-week simple moving average (SMA), which represents the average price of the token over that period, giving traders a clear view of the long-term trend while eliminating day-to-day noise.
Twice in the last two weeks, BTC briefly fell below its 200-week SMA before rising back above it at the end of each week. At the time of writing, bitcoin is trading at $63,900, just above the 200-week SMA of $62,358.
This is notable because, according to Perfumo, closings below this level have been rare, occurring on only about 10% of business days since mid-2017, and have historically marked unusually attractive entry points for buyers.
“Historically, buyers at this level have seen average returns of over 113% over the next year and 313% over two years,” Perfumo said in an email.
