Bitcoin below 200-week SMA: Is this a buy zone?

Bitcoin trades below its 200-week SMA, a historic accumulation zone. Analysts see this as a long-term entry point, but further drops to $54,000 or $40,000 are possible. Dollar-cost averaging is advised.

Bitcoin is currently trading below its 200-week simple moving average (SMA) of around $63,500, with the price hovering near $60,000. Historically, the 200-week SMA has served as a reliable indicator for major cycle bottoms and long-term accumulation zones. In previous cycles—2015, 2018, 2020, and 2022—Bitcoin saw significant rallies after touching or dipping below this level, with gains ranging from 267% to over 8,500%. Analysts highlight that while this pattern often signals strong long-term entry points, it does not guarantee an immediate bottom. Further declines to $54,000 or even $40,000 remain possible. The current environment is considered favorable for dollar-cost averaging, allowing investors to gradually build positions between $58,000 and $40,000. Recent selling by large holders has contributed to the latest dip below the 200-week SMA, reinforcing the view that this is a key accumulation zone. However, ongoing volatility means caution is still advised.