Bitcoin Close to a New Technical Bull Market
Bitcoin is changing hands around $8,900 at the time of this writing, and is close to crossing above the 200 day simple moving average for the first time since November 2019. Right now, the 200 day moving average for Bitcoin is just under $9,100 per coin.
Some technicians, like myself, label a bull market as price being above the 200 day, and a bear market as price being below that average.
Paul Tudor Jones is one of the most famous traders to spread the gospel of the 200 day moving average. When being interviewed by his good friend Tony Robbins, Paul had this to say:
“My metric for everything I look at is the 200-day moving average of closing prices. I’ve seen too many things go to zero, stocks and commodities. The whole trick in investing is: “How do I keep from losing everything?” If you use the 200-day moving average rule, then you get out. You play defense, and you get out.”
There are many reasons to be bullish on Bitcoin right now, to name a few: global central banking policy, the digitization of money, and (a non-macro reason) the Bitcoin block reward halving in May of this year.
There is still time to buy Bitcoin when its price only has 4 digits.
Full disclosure: I am long Bitcoin.
You should always consider seeking financial advice from a licensed advisor before making decisions with your money, and you should not consider anything I write as financial advice but merely my opinion. Getting your financial house in order is a prerequisite for Bitcoin saving, in my opinion.
Disclosure: nothing in this article should be considered financial advice and I am not a financial advisor. Do your own research as everything in finance carries risk.