This bitcoin level has historically meant over 100% median returns, Kraken says

Bitcoin BTC$63,831.07 has recently been flirting with a level that has historically proved a near-perfect entry point for bulls, generating handsome returns, crypto exchange Kraken’s Chief Economist Thomas Perfumo told CoinDesk.

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That level is the 200-week simple moving average (SMA), which represents the token’s average price over that period, providing traders with a clear glimpse of the long-term trend while cutting through day-to-day noise.

Twice in the past two weeks, BTC dipped briefly below its 200-week SMA before climbing back above it by the end of each week. As of writing, bitcoin is trading at $63,900, just above the 200-week SMA of $62,358.

That’s notable because, as per Perfumo, closes below this level have been rare, occurring on only about 10% of trading days since mid-2017, and have historically marked unusually attractive entry points for buyers.

“Historically, buyers at this level have gone on to see median returns north of 113% over the following year and 313% over two years,” Perfumo said in an email.