Over the past two years, Bitcoin (BTC) has shown strong positive price momentum, with a surge of over 300% since the start of 2023. In 2024 alone, the crypto market leader has surged by 40%, most notably hitting a new all-time high of $73,750 in March. However, recent price developments indicate that Bitcoin’s upward price trend could undergo significant changes in the coming months.

200-day SMA indicates Bitcoin price is at a crossroads

In an X post on Saturday, popular crypto analyst Ali Martinez shared that the price of BTC recently dipped below the 200-day simple moving average (SMA), indicating that the asset’s price movement is subject to change.

For context, the simple moving average, one of the most common trading tools, is used to identify trends in price data over a specific time, such as 200 days. As the name suggests, the indicator represents the average of all price points over the given period, allowing traders to gauge the general direction of the market.

Traditionally, when an asset’s price breaks above the SMA, it indicates an upward price change, although the reality of the expected price increase depends on the time frame of the SMA. On the other hand, when a token’s price drops below the SMA, it represents a sell signal as a price drop is expected.

However, Martinez argues that BTC’s current dip below its 200-day SMA is temporary and presents a buying opportunity for investors, supporting the token’s potential to maintain its current bullish trend. However, in a situation where Bitcoin remains below the 200-day SMA for a longer period of time, the analyst predicts that such a development could herald a bear market for the leading cryptocurrency.

Bitcoin Price Overview

Based on data from CoinMarketCap, BTC is trading at $59,995, down 1.77% over the past seven days. This negative performance highlights the asset’s struggles over the past month, where it lost over 8% of its value, briefly dipping below $50,000. Nevertheless, community sentiment towards Bitcoin remains largely optimistic, indicating that many investors are backing the token to prove profitable in the long run.

The leading cryptocurrency has repeatedly been tipped to reach six-figure values ​​based on historical price data and other factors, including the Bitcoin spot ETF market and most recently, potential changes in U.S. government policy on digital assets. However, Bitcoin’s short-term price targets for now lie at $62,000 and $70,000, both of which represent significant resistance levels for the crypto market leader.