Taking a larger simplistic point of view once in a while is warranted when it comes to investing. That is exactly what we are going to do with Bitcoin in this post.
200 Day Moving Average
If you look at the chart below, you will see the blue sloping line that represents the 200 day moving average. Any passive long-term investor can use this as their in or out gauge.
If someone doesn't hold a position then they can use it for a new entry and exit signal:
- Cross above the 200 MA, we buy. Cross below it, we sell.
It's simple, doesn't require a ton of work or attention and will keep you out of trouble. You can see from looking at the chart, you don't get a signal very often - perfect for the long-term investor.
Bullish Uptrend
For us to have any sustained bullish uptrend, price will have to surpass the 200 MA and the average will need to turn upward as well.
The fact the MA is going sideways now is an improvement over the downward slope we experience most of the year. Bitcoin really needs to make a run at that prior in the 7200 area, thus crossing above the 200 MA and giving us a shot an some actual long-term follow through to the upside.
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This is brilliant. I don’t quite understand this stuff as well as you do but I have quite a bit invested and can’t wait for growth
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Thanks Kaylin! You know you are always welcome to ask me any questions you have on this stuff. You know where to find me :-)
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I agree. Using the 200 day moving average and the 1 week chart patterns tells you a lot. We haven't been in a bull stage for a while (easy to see afterwards).
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Yeah, longer term views instantly put things into perspective and it becomes easy to see if something is strong or weak.
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What are your thoughts on Litecoin? Are you viewing it as more potential or avoid as its not the category leader? These questions are open to all who wish to respond.
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Honestly, it behaves very similar to bitcoin. That $50 level is rather important now that it has based there and considering that was the price area it was at before the crazy move in Q4 2017.
As for the 200 day MA. Some point of view as with BTC.
In regard to my opinion on the coin - it is still one of the "bigger name" coins so if the whole market goes it should act accordingly, but who knows which is why I am diversified among many coins.
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interesting man, I will never ignore your advice regarding this stuff, you called the price of steem drop to the penny. no one believed you but you were spot on.
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Haha, thanks bro. I've had a couple other calls too...I just gotta learn how to make better money off them ;-)
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Don't we all...accumulate crypto and i 100% believe we will never have to work again in 7-10 years. Coming from somone who lost ALL of his crypto and started over beginning of this year.
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Ouchie! Atleast you are back on the horse though!
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Interesting to see volume staying so low as well! I guess the traders are getting fatigued as well!
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Also a product of volatility coming out of the market. Hand in hand a bit.
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Indeed....it matters in ALL MARKETS :)
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What are your thoughts on the MA starting to turn flat? Do you see that as any sort of a precursor to a turn, or it just as often will turn back down?
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Be honest, don't really have an opinion. It does mean selling pressure has subsided, but that is also obvious from the sideways action.
You know how it is though - at some point price needs to revert back near the MA. So either we are waiting for it to inch closer or we inch up toward it.
Would love to see a run at 7K so we test it!
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I wish I could learn some basic TA but I'm the type that does best when in stressful situations. Of course as a logical man I avoid them. For now my goal is to learn coding and gain some skills with it. After that I van go back to learning how to get my money working for me.
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