Bitcoin now firmly above 200 Day Moving Average, which is very good news for next 6 months
Bitcoin has more than just the Halving going for it...
Everyone and their dog has been talking about the upcoming block reward halving as it relates to bitcoin, and for good reason...
It's an event that happens as often as we get to vote to elect a new president.
Several of my recent posts have talked about what to expect in terms of prices around the halving, both prior to and post halving.
More on that can be found here:
The TLDR of it is that we might dip slightly immediately following the halving, but in the medium to longer term it should be overwhelmingly bullish for the price of bitcoin.
Well, now there is also another positive arrow in the quiver of ol bitcoin...
Bitcoin is firmly above its 200 day moving average.
Check it out:
(Source: https://www.tradingview.com/chart/?symbol=BITSTAMP%3ABTCUSD)
Cool, so it's above its 200 day moving average, what does that mean exactly?
Well, according to research done by our good friend Tom Lee out at Fundstrat Global Advisors, bitcoin sees returns of roughly 193% in the 6 months following crossing above its 200 day moving average, on average.
The means that based on the last 10 plus years of trading data, every time bitcoin crosses above its 200 MA, we should expect to see returns of close to 200% roughly 6 months out.
Well, as I just posted above, we are now firmly back above the 200 day moving average...
So, going off the data from my post linked above where bitcoin saw returns of roughly 38% in the 6 months following its last halving combined with the fact that bitcoin has averaged 193% gains in the 6 months following the 200 MA cross, I think we should expect to see some very good gains over the coming 6 months...
More halving stuff...
For kicks and giggles, here is how bitcoin has traded into each halving:
(Source: https://www.coindesk.com/bitcoin-price-may-drop-after-halving-historical-data-shows)
How it trades into the halving may have some effect on how it trades immediately following the halving.
IE, if it runs up into the halving, it is probably more likely to pull back immediately following the halving. If it's flat, it may not have as much of a reaction.
Either way, from what we have just learned above about the 6 month returns, it sounds like we really want to be owning bitcoin over the next 6 months, and really want to be hoping there is a dip so we can really juice those returns.
Buy the dip!
And hopefully it takes STEEM with it!
Stay informed my friends.
-Doc