The curious case of Bitcoin and MA100
Updated
I've looked at Bitcoin historical price(daily charts) and Simple moving average 100 (MA100) since 2013. We were on an uptrend in 2013 followed by a long correction till June,2015. Post Jun'15 btc is on a bull run with small corrections(consolidations). Due to the recent FUD driven by demands for stricter regulations from the Chinese and American governments we tested MA100 again on 14th Sept, 2017 but the price bounced back significantly from then (close to 900$). Moreover, as the price of bitcoin gains more value the corrections will be larger (it does look like a parabolic curve on linear scale - not shown in the chart)
What is to be seen is if BTC price is going to hold up and still trade above MA100 else we can enter a long term correction wave lasting for a longer duration than the corrections we have in 2017. Another important point to note is the increasing adoption of bitcoin and cryptocurrency in general which makes the older prices irrelevant. Back in 2013 investments were more speculative in nature as there were no working products on blockchain.
[The chart is on a logarithmic scale]
What is to be seen is if BTC price is going to hold up and still trade above MA100 else we can enter a long term correction wave lasting for a longer duration than the corrections we have in 2017. Another important point to note is the increasing adoption of bitcoin and cryptocurrency in general which makes the older prices irrelevant. Back in 2013 investments were more speculative in nature as there were no working products on blockchain.
[The chart is on a logarithmic scale]
Trade closed: target reached
Perfectly executed
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