Bitcoin Jumps 25% in a Week; Move Above $82,000 Could Signal End of Bear Market

Bitcoin has jumped about 25% in the past week and is closing in on $80,000. A weekly move above the $82,000 area could provide a strong signal that the bear market has ended, CoinDesk reported on August 25, citing Galaxy Research.

Galaxy Research wrote that if Bitcoin reclaims its 50-week moving average on a weekly basis, historical patterns suggest the bear market has probably already ended. That moving average is currently in the $81,000 to $82,000 range.

The firm said that in 11 of 13 past cases in completed bear markets, Bitcoin had already formed its bottom by the time it moved back above the 50-week moving average. That leaves the level, now just above the current price, as a key test of whether the latest advance is only a rebound or the start of a broader trend reversal.

Bitcoin has already broken above its 50-day, 100-day and 200-day moving averages on a daily chart basis. Dan Tapiero, founder of 50T Fund, called it a very strong upside breakout for Bitcoin and the broader crypto market, arguing that this cycle's low has already been set.

Even so, the risk of a short-term overheating remains. Bitcoin's seven-day price gain is about 25%, a move rarely seen over the past five years. CoinDesk said similar rallies in the past were often followed by slower gains, a temporary pullback or a period of sideways trading.