Kraken: Buy below the 200-week moving average of Bitcoin, historical median return rate exceeds 100%

According to CoinDesk, Kraken's Chief Economist Thomas Perfumo stated that Bitcoin has recently been fluctuating near the 200-week simple moving average, a level that has historically been an almost perfect entry point for bulls. Over the past two weeks, Bitcoin briefly fell below this average twice but rebounded before the weekly close each time. Perfumo pointed out that since mid-2017, closing below this level has occurred on only about 10% of trading days, which is extremely rare.

Historical data shows that investors who bought at this level had a median return of over 113% in the following year, a median return of 313% in two years, and a median time to breakeven of just two days, with a median maximum drawdown of only 9% in the following year. He emphasized that past performance does not guarantee future results, but historical records indicate that this level often provides significant value for Bitcoin. As of the time of writing, Bitcoin is priced at $63,900, slightly above the 200-week average of $62,358.