Cryptocurrency
The Price Average is the Line in the Sand for Bitcoin Bulls, Analyst Says
The Price Average is the Line in the Sand for Bitcoin Bulls, Analyst Says: (CoinDesk) While bitcoin (BTC, -3.98%) can suffer deeper drawdowns due to traditional market instability, its broader bullish trend would remain valid as long as historically strong chart support is held intact. “The 21-week SMA (Simple Moving Average) is the level to defend for the […]
The Price Average is the Line in the Sand for Bitcoin Bulls, Analyst Says:
(CoinDesk)
While bitcoin (BTC, -3.98%) can suffer deeper drawdowns due to traditional market instability, its broader bullish trend would remain valid as long as historically strong chart support is held intact.
“The 21-week SMA (Simple Moving Average) is the level to defend for the bulls,” trader and technical analyst Michaël van de Poppe told CoinDesk. “The bias remains bullish as long as the SMA support is intact.”
An SMA is an arithmetic moving average calculated by adding recent prices and dividing the tally by the number of periods. SMAs are trend-following, lagging indicators and often act as support and resistance levels.
The 21-week SMA acted as a price floor during the previous bull market, as seen below.
The cryptocurrency repeatedly found dip demand (marked by arrows) around the 21-week SMA throughout the rally from $300 to $19,783 seen in the October 2015-December 2017 period.