Several well-known cryptocurrencies are trading above their 200-day moving averages, a development typically considered a sign of a healthy market.
A moving average (MA) is simply an ongoing calculation of the closing prices of an asset over a specified period of time, but is also a tool traders use to gauge the asset’s trend direction as well as support and resistance levels.
While a moving average of any length can be used, the 200-day moving average is a standard in financial analysis. Put simply, an asset trading above the 200-day MA is considered bullish (likely to move higher), while one trading below it is considered bearish (likely to move lower).
Since the long-time market leader bitcoin is not currently trading above its 200-day moving average, one could be forgiven for assuming all other cryptocurrencies are following its footsteps.
However, that is not the case…
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