Bitcoin has regained its 50-week moving average on a weekly closing basis for the first time in 45 weeks, CoinPost, a blockchain media outlet, reported on Sunday (local time).

Alex Thorn (알렉스 손), head of firmwide research at Galaxy Digital, said bitcoin has moved above its 50-week moving average based on the weekly close.

The recovery is drawing attention over whether it could go beyond a simple technical bounce and lead to a signal that the bear market has ended. Thorn pointed out in a recent post on X, formerly Twitter, that it has been 45 weeks since the weekly close rose above this level. The 50-week moving average refers to the average of weekly closing prices over the past 50 weeks.

Market participants are paying attention to the indicator because of past cases. Thorn analysed that, in past bitcoin bear markets, regaining the 50-week line had at times worked as a "strong signal" showing confirmation of a bottom. He said that after a prolonged decline, reclaiming the area led to the starting point of a rebound phase.

Recent price moves are also supporting that interpretation. Thorn also cited that bitcoin has risen 29 percent over the past 35 days. With the short-term gain not small, he suggested the return above the 50-week line could be used as a benchmark for judging whether it is a temporary bounce or the start of a trend reversal.

Still, the assessment is based on one analyst's technical analysis. Thorn said there had been cases in past bear markets where a rebound continued after retaking the 50-week line on a weekly closing basis, but he did not say the current market will follow the same path. The original article added that there is a need to continue observing market conditions cautiously.

Against this backdrop, the market is watching weekly closing levels and whether the trend holds more closely than the price itself. If bitcoin settles above the 50-week moving average, expectations could grow that it has passed a bottom on technical indicators. If it falls back below the area again, the significance of this breakout could weaken.

The analysis, meanwhile, focused on whether the key moving average based on weekly candles is regained, rather than on-chain supply and demand or macro variables. The key points going forward are expected to be whether bitcoin can turn the 50-week line it has reclaimed into support, and whether the 29 percent rise over the past 35 days continues on a weekly basis.