Historical trends tied to key indicators suggest that Bitcoin (BTC) still has many benefits as updated US inflation threatens to challenge current uptrends .
The 200-week Simple Moving Average (SMA) of Bitcoin prices smoothed out short-term market fluctuations and provided a clearer image of overall trends, at $44,200 at the time of writing.
This average is at an all-time high, but well below the previous bull market peak of $69,000 in November 2021.
Historical data may be important as historical data shows that the Bull Market is over as the 200-week SMA rose to the record price established in the previous Bull Run.
For example, the previous bull market ended in late 2021, with the 200-week SMA rising to $19,000, the bull market peak in 2017. Similarly, the bull market in 2017 ended in December of that year, with the 200-week SMA rising to a record price of over $1,200 four years ago.
If past trends apply, Bitcoin’s current range will resolve bullishness in the $90,000 to $110,000 range, paving the way for the next upward movement.
Deribit options pricing supports the bullish outlook offered by the 200-week SMA. For example, according to the data source Amberdata, options that expire for more than three months indicate that call options are more expensive than put options, indicating market expectations for price increases.
Moreover, most open interest is focused on call options with strikes higher than BTC’s driving market price of $96,700. At the time of writing, the call option on the $120,000 strike is the most popular, boasting a conceptual open profit of over $1.8 billion, reflecting bullish expectations. Open interest refers to the number of contracts that are active or open at a particular time.
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