💸💸 The 200-day moving average (MA 200) 💸💸 is a technical analysis tool widely used to identify long-term trends. It helps investors determine potential buying and selling points based on the price's position relative to this average.
1. Uptrend:
If the price of the crypto (Bitcoin, Ethereum, etc.) is above the MA 200, it indicates an uptrend favorable for buying or holding.
2. Downtrend:
If the price is below the MA 200, it signals a downtrend, therefore a potential selling point.
3. Crossovers:
Upward Crossover: When the price crosses above the MA 200, it is a buy signal.
Downward Crossover: When the price crosses below, it is a sell signal.
Example with Bitcoin (BTC):
Let’s take a real Bitcoin chart as an example. Here are the typical indications:
Price above the MA 200: Buy at around $25,000 in July 2021.
Price below the MA 200: Sell at around $47,000 in December 2021