Bitcoin breaks above $80,500, flashes long-term bullish signal for first time since 2023

Bitcoin closed above its 365-day moving average and broke a long-term trend line for the first time since March 2023. It also moved above a long-term trend line that has captured the start of major bull markets since 2019, prompting analysis that a long-term bullish signal has emerged in the bitcoin market.

On Sept. 22 (local time), blockchain media outlet U.Today reported that bitcoin recently climbed to as high as $85,897, absorbing large-scale sell orders that had weighed on the market since mid-August. In the process, it also broke above the $85,000 level seen as psychological resistance.

According to analytics platforms such as Glassnode and CryptoQuant, moving above $85,000 is interpreted as a signal that the market has entered a confirmed uptrend. In particular, the on-chain market value to realized value (MVRV) ratio rose above its long-term average, indicating entry into a zone of sustained upward momentum.

Glassnode said a similar pattern appeared in the early stages of the macro cycles in 2019 and 2023. At the time, the bitcoin network moved out of a prolonged capital accumulation phase and entered a new upcycle.

MVRV is an indicator that compares bitcoin's market value with the realized value of investors' holdings. A rise in the indicator into positive territory means the average unrealized profitability of network participants is improving.