Bitcoin Is Above Its 200-Day Simple Moving Average, But Below Its ‘Reversion To The Mean.’ Here’s How To Trade It Now.

Forbes Money Bitcoin Is Above Its 200-Day Simple Moving Average, But Below Its ‘Reversion To The Mean.’ Here’s How To Trade It Now. Richard Henry Suttmeier Contributor Opinions expressed by Forbes Contributors are their own. Following Jun 10, 2023, 02:14pm EDT | Press play to listen to this article! Got it! Share to Facebook Share to Twitter Share to Linkedin PARIS, FRANCE - MAY 16: In this photo illustration, a visual representation of the Bitcoin Digital ... [+] Cryptocurrency is displayed on May 16, 2018 in Paris, France. Bitcoin is an electronic currency that has seen an incredible increase in 2017, its price has risen up to 20,000 euros but since the beginning of 2018, a sharp decline has seen it lose more than half of its value. (Photo by Chesnot/Getty Images) Getty Images Bitcoin BTC /US Dollar FX Spot Rate (BTC=) ended last week below its ‘reversion to the mean’ but above its 200-day simple moving average. I consider the ‘reversion to the mean’ to be its 200-week simple moving average which ended last week at 26,341 with BTC trading at 25,622 on Saturday, June 10, 2023. It set its all-time weekly high of 68,999.99 during the week of November 14, 2021. From this high BTC set its 2022 low of 15,479.00 during the week of November 21, 2022. This was a huge decline of 77.5%. The year-to-date high in 2023 is 31,064,18 which is a gain of just above 100% from its low. BTC is below its annual pivot at 29,700.00 and above its 200-day simple moving average at 23,479.31. The Daily Chart for Bitcoin Daily Chart for Bitcoin Refinitiv Courtesy of Refinitiv XENITH Bitcoin set its all-time intraday high of 68,999.99 on November 10, 2021. This day was a negative key reversal day as the close that day at 64,268.40 was below the prior day’s low of 66,106.95. During the decline a death cross occurred on January 15, 2022, when the 50-day simple moving average declined below the 200-day simple moving average. This death cross was reversed with a golden cross set on February 9, 2023. After trading as low as 15,479.00 on November 21, 2022, BTC rebounded to its 2023 high of 31,064.18 on April 14, 2023. This was the gain of just above 100%. MORE FOR YOU Tesla Mints Near $200 Billion Rally After Ford And GM Charger Partnerships—Here’s How Much More The Stock Could Surge Crypto com Arena Keeping Controversial Name Despite Exchange Shut Down Binance Will Stop Trading US Dollar Amid SEC Lawsuit The 50-day and 200-day SMAs are now at 27,484 and 23,479. The horizontal lines are the annual pivot at 29,700 and the semiannual risky level at 51,347. The Weekly Chart for Bitcoin Weekly Chart for Bitcoin Refinitiv Courtesy of Refinitiv XENITH The weekly chart for Bitcoin is negative. It’s below its five-week modified moving average at 27,054 and below its 200-week simple moving average or ‘reversion to the mean’ at 26,342. The 12x3x3 weekly slow stochastic reading is declining at 62.74. Trading Strategy: Buy Bitcoin on weakness to its 200-day simple moving average at 23,479. Reduce holdings on strength to the annual pivot at 29,700. Follow me on Twitter or LinkedIn . Richard Henry Suttmeier Editorial Standards Print Reprints & Permissions