The Bitcoin 600-day Moving Average (MA) is now in line with the BTC Price Curve. Will the line provide support once more?
Bitcoin Price Curve Hits 600-Day MA
An analyst pointed out in a CryptoQuant posting that the BTC market price fell to 600 days MA support.
A “moving average” (or MA in short) is an analytical tool that averages a given quantity over a specific period of time, and constantly updates itself as time passes and the value of said quantity (the price of Bitcoin in this case) changes. Hence the “moving” in the name.
The MA is a great tool for analysis because they can smoothen the price curve and hide random fluctuations. Such short-term ups and downs in the value of BTC generally aren’t relevant to any long-term trend study so MAs are usually employed when looking over large timespans.
An analyst may choose to receive an MA for any length of time.
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In the above post, the quant referred to the 600 day version. The chart below shows the trend of the bitcoin price over the past 12 months.
Source: CryptoQuant| Source: CryptoQuant
The graph above shows that Bitcoin’s value has reached the 600-day MA multiple times since its all-time high last year.
During each of those retests, the 600-day MA curve line has acted as support for the crypto’s price, and helped it propel back up.
They have now touched again. It remains to be seen if the support will continue this time.
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Bitcoin might experience real price decline if the price falls below 600 days MA curve. This is similar to when Bitcoin fell from 200-day MA Support.
BTC price
At the time of writing, Bitcoin’s price floats around $39.8k, down 9% in the last seven days. In the last month, crypto has seen 2% gains.
Below chart displays the trends in the value of the coin during the last five working days.
Looks like the price of BTC crashed down a few days back | Source: BTCUSD on TradingView
Bitcoin has fallen below the $40k mark after almost one month of holding it above. The price fell over the past few days.
Unsplash.com featured image, Charts from TradingView.com and CryptoQuant.com charts