Kraken: Buying Bitcoin Below Its 200-Week Moving Average Has Historically Yielded Median Returns Over 100%

CoinFeed, June 18 – According to CoinDesk, Kraken Chief Economist Thomas Perfumo noted that Bitcoin has recently been fluctuating around its 200-week simple moving average, a level that has historically served as a near-perfect entry point for bulls. Over the past two weeks, Bitcoin briefly dipped below this average twice but recovered before the weekly close each time. Perfumo pointed out that since mid-2017, weekly closes below this level have occurred on only about 10% of trading days, making them extremely rare. Historical data shows that investors who bought at this level saw a median return of over 113% in the following year and 313% over two years, with a median time to break even of just two days and a median maximum drawdown of only 9% in the subsequent year. He emphasized that past performance does not guarantee future results, but the historical record suggests Bitcoin often offers significant value at this level.