Bitcoin (BTC) has generated a powerful positive price performance over the past two years, gaining over 300% since the start of 2023. In 2024 alone, the cryptocurrency market leader is up 40%, reaching a modern all-time high of $73,750 in March. However, recent price action suggests that Bitcoin’s upward price trajectory could undergo significant changes in the coming months.

The 200-day moving average signals that bitcoin price is at a crossroads

IN Posts X on Saturday, popular cryptocurrency analyst Ali Martinez reported that BTC’s price recently fell below its 200-day basic moving average (SMA), indicating that the asset is undergoing changes in price movement.

For context, a basic moving average, one of the most popular trading tools, is used to identify trends in price data over a set period of time, such as 200 days. As the name suggests, the indicator represents an average of all price points over a given period, allowing traders to assess the overall direction of the market.

Traditionally, when the price of an asset crosses the SMA, it indicates a price change in an upward direction, although the reality of the expected price augment depends on the time frame of the SMA. Alternatively, when the price of the token falls below the SMA, it indicates a sell signal as the price is expected to fall.

However, Martinez assumes that BTC’s current dip below the 200-day SMA is transient and presents a buying opportunity for investors, supporting the token’s potential to maintain its current uptrend. Although, if Bitcoin’s stay below the 200-day SMA becomes longer, the analyst predicts that such a development could initiate a bear market for the leading cryptocurrency.

Bitcoin Price Overview

Based on data from CoinMarketCapBTC 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, during which it has shed over 8% of its value, briefly falling below $50,000. Despite this, the community sentiment towards Bitcoin remains largely positive, indicating that many investors are supporting the token, hoping it will prove profitable in the long run.

The leading cryptocurrency has been tipped to hit six figures multiple times based on historical price data and other factors, including the Bitcoin spot ETF market and, more recently, potential changes in U.S. government policy regarding the digital asset. However, Bitcoin’s short-term price targets for now are $62,000 and $70,000, which are significant resistance levels for the cryptocurrency market leader.