- Bitcoin traded above $85,000 this week, its highest level in roughly eight months
- BTC closed a full week above its 50-week moving average for the first time in 45 weeks
- The move came alongside more than $600 million in short-position liquidations in a single day
Bitcoin traded above $85,000 this week, its highest level in about eight months, and closed a full week above its 50-week moving average for the first time in 45 weeks. The price is tracked directly on CoinMarketCap’s own bitcoin page, which aggregates trading data across major exchanges rather than relying on any single venue’s quote.
The 50-week moving average smooths out short-term noise and shows the longer trend bitcoin has actually been on, not just where it sits today. A sustained close below that line usually marks a bear phase, since it means recent prices have stayed weaker than the broader trend for an extended stretch. Closing back above it after 45 straight weeks underneath is the kind of shift traders watch for as a signal that the longer trend itself may be turning, rather than reading too much into any single day’s price move.
Market participants who track this specific signal note that bitcoin has crossed back above its 50-week average from a similar multi-month stretch below it several times in past cycles, and in most of those past instances the price did not fall back to a new low afterward. That pattern is not a guarantee, and this run of data covers a limited number of past cycles, so it works better as context for why traders are paying attention than as a forecast of what happens next.
The move higher this week was amplified by a wave of short-position liquidations, with more than $600 million in short bets forced closed within 24 hours as the price pushed through levels where many of those positions had been set. Forced buying from liquidated shorts tends to accelerate a rally that is already underway, since traders covering losing bets have to buy back the asset regardless of what they think the price should do next, which can make a move look stronger in the moment than the underlying demand alone would produce.
Whether bitcoin holds above both $85,000 and its 50-week average in the coming weeks is the more relevant test than this week’s crossing on its own. A quick reversal back below the average would undercut the signal traders are currently pointing to, while a second and third week holding above it would make the case considerably stronger than one week alone can.
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