The chart shows that the 600-day moving average of Bitcoin (MA) has once again met the BTC price curve, so will the line act as a support for the cryptocurrency again?
Bitcoin price curve touches 600-day moving average again
As pointed out by an analyst at CryptoQuant mailBitcoin price fell back to the 600-day moving average support line.
a “moving average“(or MA for short) is an analytical tool that determines the average of a certain amount over a specific period of time, constantly updates itself over time and changes the value of said quantity (the price of bitcoin in this case). Hence the word “moving” in the name.
Moving averages can be very useful for analysis because they smooth the price curve by masking any local random fluctuations. These short-term fluctuations in the value of BTC are generally not related to any long-term trend study, so moving averages are usually used when looking at large timescales.
The analyst can choose to take a moving average over any period of time, whether it is just one minute, or even a thousand days.
The quantity in the post refers to the 600-day version. Here is the chart showing its trend against the price of Bitcoin over the past year:
The 600-day MA curve seems to have met the BTC price once again | Source: CryptoQuant
As you can see in the chart above, since the price has fallen after an all-time high last year, the value of Bitcoin has made touches of the 600-day moving average multiple times.
During each of these tests, the 600-day moving average curve line represented a the support As for the price of the cryptocurrency, and helped her to pay again.
Now the two lines touch each other again, but it remains to be seen whether the support will continue this time or not.
If the price trends are below the curve of the 600-day moving average, Bitcoin may notice some real decline, just as it lost the support of the 200-day moving average.
At the time of writing this report, Bitcoin price It is floating around $39.8K, down 9% in the past seven days. Over the past month, the cryptocurrency has accumulated 2% gains.
The chart below shows the currency price trend over the past five days.
Looks like the price of BTC crashed down a few days back | Source: BTCUSD on TradingView
After settling above the $40K level for about a month, it appears that Bitcoin has once again fallen below the level. After the decline, the price has moved sideways for the past two days.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com