Analysis: For the first time in 18 years, bitcoin prices are higher than the main moving average for the first time. What is the signal?

 

What to watch today–the price of Bitcoin is higher than the main moving average for the first time.

Last Tuesday, bitcoin prices appeared above the three moving averages, the first time in nearly 15 months since 2018. This is a by-product of bitcoin soaring more than $20 more than $20.

Let us know the moving average (MA). When used in financial analysis, such as price or trading volume for a certain period of time, it is the average of a continuous calculation of economic factors. Moving averages are especially useful for eliminating short-term fluctuations in data sets and are used to determine the direction of long-term trends.

When analyzing the price of a trading asset, certain moving average times (such as 50, 100, and 200) are more important because they tend to show whether the recent price trend is over, showing a short-term or medium-term trend. Highlight the market situation of long or short positions. The most important is the 200-day MA moving average, which is generally considered to be the dividing line between a strong market and a weak market.

It is worth noting that this is the first time since January 13, 2018 that the price of Bitcoin has been above these three key moving averages.

The price of Bitcoin is higher than the main moving average for the first time (50, 100, 200)

As shown in the above chart, Bitcoin's price at that time was close to $15,000, and then fell below the 50-day moving average. Contrary to the current disk, this is a bearish signal, indicating that the strength of the short-term trend has a certain degree of loss. Shortly after falling below the 50-day moving average, the price of Bitcoin fell below the remaining two moving averages, consolidating the previous bearish trend.

Now, the bitcoin's turnaround just rises above the 100-day line, and then rises to 50 days and 200 days, so it can be said to consolidate the bullish trend.

On February 18 this year, the price of Bitcoin began to rise above the 50 and 100-day moving averages, and the trend of Bitcoin began to strengthen. After about three weeks, the 50-day moving average broke the 100-day moving average, an example of a moving average trading strategy called a bullish cross, which is often considered a buy signal. Since Bitcoin fell below the MA on March 14, 2018, bitcoin prices were above the 200-day moving average for the first time on April 2.

Looking back at Bitcoin's historical price data, the 200-day moving average is indeed an important dividing line. In the previous uptrend, its price has been above the 200-day moving average until the market peaked in 2018. The main moving average is also considered to provide price support and resistance. The 200-day moving average is a stubborn technical obstacle, so the price of the 200-day moving average is a very effective breakthrough.

Market analysis

BTC

During the BTC small holiday period, it has steadily increased along the 5-day moving average, and has now broken through the key resistance level of 5,200 US dollars. From the technical point of view, it is the switch to realize the bear-to-bovine. From the face of the disk, the moving average and the MACD line continue to rise without changing the pattern, indicating that the bullish sentiment is high, and the upward market will not be easily broken in a short time. At present, the market is in an overbought condition. The top 5,300 US dollars is a strong pressure. The current volume can be adjusted back. The short-term market will be dominated by shocks.

Support level: $5070, pressure level: $5300

ETH

ETH continued to rise along the 5-day moving average yesterday, and continued to break the market this morning. ETH is now out of the bottom shock since last November, and it is also above the MA200 main moving average. It seems that the strength of the broader market continues to drive it to attack the space above. Sun Yuchen proposed that the wave field should cooperate with Ethereum this year. Continue to be optimistic about ETH in the short term, and step back on the support of the moving average to properly increase the position.

Support level: $170, pressure level: $190

EOS

EOS is healthy and continues to trade in time for space to match the resistance before the last plunge. The current market stability has also given great support to other mainstream currencies. Continue to pay attention to whether the above resistance level of 6 US dollars can be broken. Here, the subsequent upside will be opened, and there will be little problem in the short-term callback.

Support level: $5, pressure level: $6

BCH

After the BCH rushed, it began to get tired and fell on the 5-day moving average support to repair the market. From the perspective of quantitative energy, it is unlikely that the short-term independent rise will be small. It is recommended to continue to hold the wait and see without breaking the support.

Support level: $290, pressure: $330

XRP

After a round of breakthrough on the 5th, XRP did not move much and remained oscillating above the 5-day moving average. The current amount can continue to weaken, and the 4-hour chart continues to appear in the pin market, indicating that both the long and short sides are in anxious. Although XRP did not sing all the way as expected, Soochow continued to be optimistic, and has already stepped out of the bottom of the weak box, and there is room for increase in the future. Short-term XRP is dominated by regional shocks.

Support level: $0.35, pressure level: $0.37

LTC

LTC high shock market, the top 100-110 US dollars area has no kinetic energy to match the breakthrough, from the 4-hour chart to see the LTC moving average and MACD line turned weak, short-term callback demand, it is recommended to hold the currency.

Support level: $85, pressure level: $100

OKB

OKB has a large correction, and there are probes on the weekly line. Therefore, it is less likely to break through the attack. The short-term 2 dollars is an effective support. It is recommended to continue to hold the currency. From April 10th, the building block cloud project is very close, and it will lift a wave of market.

Other platform currencies are temporarily less hot in the callback, and attention is paid to new products coming out of the news.

ETC

ETC Atlantis hard forks are expected to occur in the 875,000 block, which may occur after 134 days. This good news gave the market a strong pull yesterday. If the short-term high is too large, it needs to be adjusted back. It will continue to be optimistic in the medium and long term. It is recommended to fix the currency first.

Support level: 6.5 USD, pressure position: 8 USD