Bitcoin approaches four-year SMA support level, analysis suggests it may be at the end of a bear market

CryptoQuant analyst Darkfost's model shows that Bitcoin has entered a bear market range based on a four-year simple moving average (SMA) indicator. This indicator measures the valuation status through standard deviation and SMA multiple. The higher the multiple, the deeper the overbought situation, and the closer the price is to the four-year SMA, the lower the valuation. At present, the price of Bitcoin has fallen back to the green zone and is close to the four-year SMA level, with the moving average around $57500. Historical data shows that this level usually corresponds to the end of a bear market, with BTC prices trading in this region for whole months. Darkfost stated that although they do not prefer models based on moving averages, they believe that this metric is worth paying attention to.