Bitcoin price started this week on a high which was an unprecedented move for many market participants. After spending the first days of October disappointing investors, the price of Bitcoin he earned over $66,000 for the first time in many weeks.

Interestingly, this price action has once again weighed on the price of Bitcoin is approaching a critical technical level with a 200-day moving average. Historically, a break above this key indicator signaled the beginning of a pointed rally, often resulting in parabolic price increases. The question is: can Bitcoin repeat this historic pattern and usher in another massive rally?

Bitcoin price is approaching the 200-MA. What does this mean?

The 200-day moving average provides a clear picture of the asset over the long term. A break above the 200-day moving average suggests that the cryptocurrency is currently trading with a positive differential compared to its 200-plus-day moving average. Especially for Bitcointhis indicator has often served as a turning point between bullish and bearish sentiment regarding its price.

Crypto analyst Ali Martinez he noticed it in the past, a break in Bitcoin price above the 200-day moving average has consistently signaled the beginning of a parabolic rally. The last three times Bitcoin’s price has broken above its 200-day moving average, sparking a parabolic bull run. The first time occurred in 2016, when Bitcoin continued its growth of 7,513%, which lasted for almost two years.

Again in 2021, Bitcoin price breached the 200-day moving average for the second time, leading to a 705% price raise that peaked in April 2021. Most recently in 2023, Bitcoin price breached the 200-day moving average for the third time, triggering another significant price raise. This time, Bitcoin has surged 275% from its breakout level.

These previous examples demonstrate the importance of the 200-day moving average for bullish price action. The recent price action has seen Bitcoin’s price once again break out just above its 200-day moving average, which currently stands at around $65,844. As a result, this price point has now become a major focus for both bull and bear traders.

What’s next for the BTC price?

Bitcoin price reached $66,000 over the last 24 hours, although it has retreated slightly and is currently trading just below. A reconfirmation above $66,000 would ultimately result in a break above the 200-day moving average and potentially spark another bull rally.

As Bitcoin tries to break above this key level, all eyes are on whether it can replicate the parabolic moves seen in previous cycles. However, price returns have been shortening over the last three breakouts.

However, even a return of 100% to 150% would translate into a price target of between $132,000 and $165,000 over the current price. Bitcoin could also easily break out of the 200-day moving average and reach these price points quickly, especially when using this currency growing institutional inflows through Spot Bitcoin ETFs.

Featured image created with Dall.E, chart from Tradingview.com