Bitcoin breaks above its 50-day moving average… bolstering near-term bullish momentum

Bitcoin (BTC) appears to be strengthening its bullish momentum after breaking above the 50-day moving average, a key technical indicator, for the first time in about two months.

According to CoinDesk on the 16th (local time), Bitcoin has risen more than 3% over the past 24 hours to around $73,700. That puts it above the 50-day moving average, which had been formed near $71,125—an outcome the market is reading as a signal to gauge the potential for a medium-term trend reversal.

The 50-day moving average is among the most widely used momentum indicators, and analysts say a breakout above it can reinforce a medium-term uptrend. Alex Kuptsikevich, chief market analyst at FxPro, explained, “The 50-day moving average is a representative indicator of the medium-term trend, and a decisive break above it could mark an important turning point for the market.”

Recently, Bitcoin has maintained a relatively resilient performance despite the war in Iran and heightened volatility in global equities. In particular, it has kept its gains even as Asian stock markets weaken, drawing market attention.

Still, some caution that a technical breakout does not automatically translate into a long-term uptrend. In fact, in January this year Bitcoin also broke above the 50-day moving average and rose about 8%, but the rally faded in roughly two weeks.

The market also notes that volatility could increase if Bitcoin approaches the $75,000 level. At that price range, market makers hold large net short gamma positions, meaning hedging flows could be triggered as prices rise, amplifying volatility.