Bitcoin’s price has risen above the 100-day simple moving average (SMA) level, which is considered a structural indicator in long-term market trends. This development is considered as one of the critical threshold points that determine the expansion or weakening of the cryptocurrency market. Although moving averages are frequently used in technical analysis, the 100-day SMA has particular importance as it signals Bitcoin’s main trend and permanent changes in market behavior.
The Importance of the 100-Day Average
According to market observers, the 100-day SMA has served as a type of regime line for Bitcoin in past cycles. When the price remains above this level, a bullish structure usually prevails, while buyers appear to support the market and increase momentum. Conversely, it is reported that when the price falls below the 100-day average, recovery attempts mostly fail and the pressure from the sellers comes to the fore. Historically, every major cycle reversal has interacted dramatically with this moving average, redefining market direction.
Contraction and Decision Point
The latest rise occurred after Bitcoin traded in a narrowing price range for a long period of time. Such squeezes, which occur after a long-term horizontal movement, often cause volatility to increase again, but the direction becomes clear only with technical confirmation. Currently, Bitcoin is technically approaching the decision point. If the price sustains above the 100-day SMA, the market structure may strengthen to the upside. However, losing this level again will mean structural weakening with the risk of a technical failure.
Transitions in long-term moving averages do not usually end quietly. Most of the time, this results in either a continuation of the trend or the market coming under downward pressure again. Therefore, the current technical threshold is closely monitored, especially by medium and long-term investors.
Structural Perspective and Prospects
The main indicator in technical analysis, the 100-day SMA, is powered not only by price movements but also by the general trend of the market. Bitcoin’s movement above this critical level indicates that a structural test is taking place in the market rather than short-term fluctuations.
Market players are now mainly considering two scenarios: If Bitcoin is permanently accepted above this average, a new period of expansion in price movements may begin. On the other hand, losing the above level again in a short time will mean a transition to a defensive position in the market structure.
As a result, it is considered that Bitcoin has entered a structural period in which price verification becomes more important than speculation.
