Update – Bitcoin hit $17,600 on June 18th during weekend price action, with lower liquidity and fear over an ETH whale being close to liquidation. In the case of the Bitcoin 200 week SMA, it is an arithmetic mean – adding the last 200 weekly closing Bitcoin prices together and dividing the total by 200 to calculate the average. The 200 SMA is seen as more accurate for technical analysis on high timeframe (HTF) price charts, and the 200 EMA is often preferred on a low timeframe Bitcoin chart, more sensitive to short term price movements.Īn SMA calculates the average of price data, and an EMA give more weighting to more recent price data, by applying a multiplier so that older price action (PA) has less of an impact. Moving average (MA) indicators are also referred to as simple moving averages, different to exponential moving averages in how they are calculated. Over Bitcoin’s price history any touches of that moving average have been the best time to buy Bitcoin, at least by dollar cost averaging (DCA) into a position.
Will it now be broken amid recession fears? That remains to be seen, but being bearish at support is usually a mistake for investors and traders. So for 7.5 years, the Bitcoin 200 MA has acted as an important historical support line, holding up the Bitcoin price. Zooming out on the BTC price chart further – which can be done on the Bitstamp chart or the BraveNewCoin Liquid Index chart on Tradingview – the Bitcoin 200 MA also acted as support in January 2015.īitcoin 200MA support in the 2015 – 2016 bear market There have only been brief wicks below that support level, quickly bought up by buyers. On the Bitcoin price chart, no weekly candles have closed under the 200 MA – including the drop to the $3.1k bottom in the 2018 bear market, and the covid crash of March 2020.
#200 EMA VS 200 MA HOW TO#
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