Bitcoin 50-Day MA Is Moving Below The 200-Day MA Right Now
As pointed out by an analyst in a on X, the 50-day moving average (MA) has been attempting a cross below the 200-day MA recently. A “Moving Average” is an analytical tool that calculates the average of any given quantity over a specific period of time. As its name suggests, it moves and changes alongside the quantity in question.
The main benefit of an MA is that it removes short-term fluctuations from the data, smoothing out the curve. This makes the study of long-term trends easier to perform.
Looks like the two metrics have approached each other in recent days | Source:Historically, whenever the 50-day MA has dipped below the 200-day MA, the cross has proved to be a bearish one for the cryptocurrency’s price. In the above graph, it’s visible that the last time this type of crossover occurred was in January 2022.
Back then, the asset had been on its way down from its November 2021 all-time high and the death cross may have cemented the asset’s fate, as a long bear-market drawdown had followed afterward.
The opposite type of crossover, where the short-term MA moves above the long-term one, has generally been a bullish cross instead, as the asset has usually enjoyed uptrends following it. This crossover had been seen earlier in this year as well, after which BTC had gone on to see some significant rise.
BTC Price
Bitcoin has gone through a bit of a rollercoaster in the past two days, as its price had first dropped towards the $25,100 level, but has since already recovered above $26,100.BTC has sharply surged during the past day | Source:
