- Bitcoin broke above the $83,000 resistance to reignite bullish sentiment among users.
- The cryptocurrency climbed above the 50-week MA for the first time in 45 weeks.
- Geopolitical de-escalation triggered a $618M net taker surge, wiping out Bitcoin shorts.
Bitcoin surged over 8% on Monday, breaking above the $83,000 resistance and reigniting bullish sentiment among users. Amid the latest break above key resistance, BTC users have noted other developments, sparking discussion of a potential trend reversal after several months of bearish pressure.
BTC Climbs Above the 50-Week Moving Average
Bitcoin has sparked renewed interest after climbing above its 50-week moving average for the first time in 45 weeks. Alex Thorn, Head of Firmwide Research, noted that regaining the 50-week MA has historically served as strong confirmation that the bear market has reached its lows.
Thorn’s latest post on X shows that Bitcoin dropped below the 50-week MA at the end of November 2025 and remained below the dynamic resistance amid protracted bearish market conditions, only to close above the indicator for the first time in 45 weeks on September 20, 2026.
Bitcoin Reclaims Key Long-Term Averages
CryptoQuant founder Ki Young Ju pointed to another bullish signal, noting that Bitcoin has reclaimed its 365-day moving average. He said the breakout above the $83,000 level marks a threshold many traders watch to confirm the end of a bear cycle. According to Ju, holding above this level could attract momentum-driven inflows and trigger institutional participation.
Meanwhile, analyst Joe Consorti echoed the significance of Bitcoin’s move above its 50-week moving average. He noted that similar breakouts have historically coincided with cycle bottoms about 75% of the time. Consorti added that the only major exception occurred during the COVID-19 market crash, describing Bitcoin’s current phase as an early or “tentative” bull market.
What is Behind Bitcoin’s Latest Rally?
CryptoQuant analyst Darkfost has attributed the latest Bitcoin price rally to geopolitical de-escalation. He noted that the US abandoning a potential massive military operation in the Middle East over the weekend sparked a $618 million net taker volume, which wiped out Bitcoin shorts.
The analyst described the shift as a catalyst that quickly flipped market sentiment bullish. The geopolitical update triggered a sharp reaction in derivatives, with net taker volume surging from $11 million to $618 million within an hour on Binance during early European trading. That spike reflected aggressive buying pressure, which forced short positions to unwind and accelerated Bitcoin’s upward move.
Will Bitcoin Sustain the Bullish Momentum?
Whether the current move to $85,900 becomes a sustained breakout depends on the tug-of-war between strong underlying technicals and highly leveraged derivative markets. Despite the merits of the latest breakout and its structural support, there are hidden vulnerabilities that could undermine Bitcoin’s sustained rally.
Decisively closing above this long-term barrier is historically a textbook indicator that trend-following institutional systems use to flip from bearish to long-term bullish. However, a significant portion of this explosive 24-hour move was driven by a short squeeze and forced liquidations, rather than pure demand, suggesting the move could be a false breakout.
Related: Fed Hiked Rates, Yet Bitcoin Is Pumping: Is BTC Breaking Its Dollar Dependence?
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