According to Darkfost from CryptoQuant, the four-year simple moving average (SMA) indicator for bitcoin has now entered the bearish market level zone. This indicator evaluates the valuation state of bitcoin using standard deviation and the SMA multiple: the higher the multiple, the greater the overbought level; the closer the price is to the four-year SMA, the lower the valuation.

Currently, the price of bitcoin has fallen back into the green zone and is approaching the level of the four-year SMA, which is currently around 57,500 dollars. According to historical trends, this level generally marks the last phase of each bear market, with the BTC price tending to fluctuate in this zone for several months. Darkfost indicates that he is generally not a proponent of models based on moving averages but believes that this indicator is worth monitoring.