Bitcoin's Price Rises Above Major Moving Averages In First Since 2018

Bitcoin's price emerged above three major moving averages for the first time in nearly 15 months on Tuesday.

A moving average, when used in financial analysis, is simply a continuously calculated average of a certain economic factor like price or trading volume over a specified period of time.

Certain moving average durations like the 50, 100 and 200 day MA's are of more importance when analyzing the price of a traded asset because they tend to display if recent price action is out or under performing its recent or distant trends, which can highlight bullish or bearish market conditions.

Notably, bitcoin's price is now trading above these three key moving averages in first since January 13, 2018.

As can be seen in the chart above, bitcoin at the time was priced closer to $15,000 before falling below the 50 day moving average, according to Bitstamp figures.

Bitcoin's price began trading above both the 50 and 100 day moving averages on Feb. 18 of this year, suggesting its trend was beginning to pick up strength.

Last but not least, bitcoin's price was able to trade above the 200 day moving average today for the first time since it fell below the MA on March 14, 2018.

Looking back at bitcoin's historical price data, the 200 day moving average indeed appears to be an important obstacle to gain acceptance above.

Notably, its price remained above the 200 day MA for the entire uptrend, until after the market had topped in early 2018.

It's important to note major moving averages are also touted for offering price support and resistance, so the 200 day MA is likely to be a stubborn technical hurdle until bitcoin's price can close on a UTC basis above it.