Why is the 20-day moving average of SPY considered important in the cryptocurrency industry?

1 answers

• May 02, 2022 · 3 years ago
  The 20-day moving average of SPY is important in the cryptocurrency industry as it helps traders and investors identify potential support and resistance levels. When the price of SPY approaches or bounces off the 20-day moving average, it often acts as a support level, indicating that buyers are stepping in and preventing further decline. On the other hand, when the price struggles to break above the 20-day moving average, it may act as a resistance level, suggesting that sellers are preventing further upward movement. By identifying these levels, traders can make more informed decisions and manage their risk effectively.
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