Kraken chief economist Thomas Perfumo said Bitcoin recovered from two brief breaks below the long-term support level, with closes under it occurring on about 10% of trading days since mid-2017.
Bitcoin has been trading close to its 200-week simple moving average, a long-watched long-term trend gauge that market participants often treat as a key support zone in major downturns. Kraken chief economist Thomas Perfumo said the token briefly fell below that level twice in the past two weeks but recovered before each weekly close. He added that closes below the 200-week average have occurred on about 10% of trading days since mid-2017. With Bitcoin at $63,900 against a $62,358 200-week average, Perfumo said historical median returns after buying at that level were more than 113% over one year and 313% over two years.