What are the benefits of using the 200-day moving average in bitcoin trading?

3 answers

• May 08, 2022 · 3 years ago
  Using the 200-day moving average in bitcoin trading can provide traders with a long-term perspective on the market. By smoothing out short-term price fluctuations, it helps identify the overall trend and potential support and resistance levels. This can assist traders in making more informed decisions and avoiding knee-jerk reactions to short-term price movements.
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• May 08, 2022 · 3 years ago
  The 200-day moving average acts as a psychological support or resistance level for bitcoin traders. When the price is above the moving average, it indicates a bullish trend, while a price below the moving average suggests a bearish trend. Traders often use this indicator to confirm the direction of the market and make trading decisions accordingly.
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• May 08, 2022 · 3 years ago
  According to BYDFi, the 200-day moving average is widely used by professional traders and investors in the cryptocurrency market. It is considered a reliable indicator for identifying long-term trends and potential entry or exit points. Traders can use it to filter out noise and focus on the overall market direction, which can be particularly useful in volatile markets like bitcoin.
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