Bitcoin Moving Average Show Bull Markets In The Making

Bitcoin’s (BTC) 200-day moving average (DMA) continues to slide in the longest downward trend since the summer of 2014.

Price data collected over the last 200-days indicates the Bitcoin moving average fell from $10,300 in early June to today’s $8,300. Although still $2,000 higher than the $6,150 moving average at the start of 2018, this is the first declining trend for the 200-DMA in three years. The last slide saw the average decline from $650 in June 2014, to $250 in July 2015.

Traders use DMAs to determine an asset’s price-trend overtime and to identify changes to the established trend. They are calculated by dividing the sum total of past closing prices – within a certain timeframe – over the number of days. A rising DMA indicates an asset is an uptrend, with a declining DMA showing a downtrend.

The number of days included in a DMA depends on what it is being used for. Longer averages like a 200-DMA are useful for ‘hodlers’; traders with short-term positions…