Bitcoin 4 Year Moving Average

Have you been interested in getting in to Bitcoin for a long time, or already have some Bitcoin but want to know when to buy more?

Well the Bitcoin 4 Year Moving Average, otherwise known as the 200 Week Moving Average can be a useful piece of technical analysis to add to your investment toolkit.

What is a Moving Average?

Before we look at using the Bitcoin 4 Year Moving Average for our trading or investing techniques, it’s important to understand what a moving average is.

In very simple terms a moving average is the mean of all of the previous days pricing data for a set period. For example a 100 day moving average will take an average of the past 100 days price data, this is known as a simple moving average (SMA).

Another popular moving average indicator is the exponential moving average (EMA), this still takes an average of past prices over a set period of time; however it gives more weighting to recent price data rather than past data.

Although, the past is no guarantee of future performance, moving averages are a very useful tool for investors looking to see both bullish and bearish price trends in any market.

Bitcoin 4 Year Moving Average

Chart courtesy of www.lookintobitcoin.com

4 Year/200 Week Moving Average Heatmap

The chart above shows Bitcoin’s moving average price from 2012 to the present day.

The purple line on the chart is the moving average and the coloured dots on the chart show Bitcoin’s distance from that moving average.

As you can see, each time the price touches the moving average and is dark blue or purple it normally represents the bottom of that price range, before Bitcoin’s price takes off again to the upside. For example, if you had purchased Bitcoin at these points, you would have bought at the following prices:

  • 12th June 2015 – $229 per Bitcoin
  • 26th January 2019 – $3,272 per Bitcoin
  • 16th March 2020 – $5,013 per Bitcoin

If you had bought at any of these prices, you would be quite pleased with yourself by now.

Looking back at the chart, it can also show when the price is likely to retrace or drop. When the price is far away from the 4 year moving average and prices are marked red, this is a possible sign that Bitcoin will turn bearish and that it may be worth converting some of your BTC to stablecoins.

Did you find our analysis on the 4 Year Bitcoin Moving Average useful? If you did and would like to invest in Bitcoin, look at our Best Bitcoin Exchanges page.

Please note, this article is not investment advice and is for information purposes only.