According to ChainCatcher, citing CoinDesk, Kraken Chief Economist Thomas Perfumo said Bitcoin has historically offered significant long-term buying opportunities when it fell below its 200-week simple moving average, or 200-week SMA. Past data cited in the report showed that the median return from that zone exceeded 100%.
The report added that Bitcoin briefly dropped below the 200-week SMA twice over the past two weeks. In both cases, the price rebounded quickly and reclaimed that level. The 200-week simple moving average is a long-duration price average often used to evaluate Bitcoin’s position within a broader cycle.
Perfumo’s comment focused on the relationship between this long-term moving average and historical returns. The report stated that previous breaks below the level were associated with strong median gains afterward, while the latest information only described Bitcoin’s recent brief moves below the line and its quick recovery back above it. No new price target or trading recommendation was provided in the report.