Galaxy Says Bitcoin’s 50-Week Trend Signals a Potential Bottom
Galaxy Asset Management’s head of firmwide research, Alex Thorn, says the Bitcoin market may have bottomed and that now could be a time to buy. His view centers on Bitcoin reclaiming its 50-week moving average during the week of September 20 and maintaining that trend afterward. Galaxy notes that in the four previous instances when Bitcoin regained the 50-week average after spending more than 20 weeks below it, the price did not close more than 8.4% below the reclaim level during the following year. The historical pattern supports Galaxy’s Bitcoin outlook, but it does not guarantee future performance. For traders, the 50-week moving average is a key technical level to watch for signs that the recovery is holding or losing momentum.
Bullish
The news is mildly bullish because Galaxy’s research head says Bitcoin may have found a bottom, citing its recovery above the 50-week moving average and the historical behavior following four similar reclaims. A sustained move above this widely watched technical level could bolster trader confidence, attract momentum-oriented buying and support the view that the market is recovering. In the short term, however, the signal may also prompt volatility: traders could treat the moving average as support, while a drop back below it could trigger profit-taking or renewed caution. The historical comparison is based on only four prior instances, so it is not conclusive and does not rule out a reversal. Longer term, the level’s significance will depend on whether Bitcoin continues to hold it and whether broader market conditions confirm the recovery. The article reports Galaxy’s analysis, not a guarantee or a standalone trading recommendation.