Bitcoin’s yearly moving average just hit a new all-time high, exceeding the prior high set following a year of bullish price action in 2017. At around $9,600 at the time of writing, the actual price of Bitcoin remains a long way from its all-time high.
A moving average is an indicator used by traders and analysts to smooth out volatility in prices over time. It is formed by taking the mean of prices over a set period (in this case 365 days).
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As pointed out by The Moon (@TheMoonCarl) via Twitter, a yearly moving average cancels “out the noise.” In fact, it cancels out so much of the noise that the 365-MA chart included in the tweet doesn’t acknowledge either the spikes up to $20,000 or $14,000 in 2017 and 2019, respectively, or the lows following these bullish moves.
The Moon concludes that the yearly moving average hitting a new all-time high is bullish for the future. However, some of the analyst’s followers are calling the yearly BTC price action a double top, which is typically a very bearish indicator.
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