Bitcoin finally broke above it's 200 day moving average.
That is very good news for the bulls.
According to data compiled by Fundstrat Global Advisors, when bitcoin is above its 200 day moving average, it has a win rate of 80%.
That means that for every 10 days that bitcoin is above its 200 day moving average, it is green in roughly 8 out 10 of those.
Let that sink in for a bit...
We are green in 8 out of every 10 days that we are above the 200 day MA, nice!
Bitcoin has been above its 200 day moving average 1,765 times (days), and of those times it was positive 80% of the time.
It has been below its 200 day moving average 923 times (days), and of those times it was positive only 36% of the time.
Which means, that when bitcoin is above its 200 day moving average it has a win ratio of roughly 80%:
This is the first time that bitcoin has been above its 200 day moving average since March of 2018.
Which means, we have our first 200 day MA cross in over a year.
Currently the 200 day moving average is right around $4,700.
If prices continue to stay above that, we should have a lot more green days than red going forward.
That should also work as a nice support should we retest it.
If you look at the average 6 month return when bitcoin is above its 200 day moving average...
The average 6 month return yields roughly 200% gains.
That means that if prices hold here above their 200 day moving average, we could expect to see bitcoin around $12k-$15k within the next 6 months if history were to repeat.
Not sure we will go that high that quickly, but hey we have math on our side at least!
Stay informed my friends.