Determining the trend in Bitcoin

The trend is your friend "is a basic rule in technical analysis". Therefore, before you start trading Bitcoin, it is important to know the trend in cryptocurrency. Another rule of technical analysis is - always switch from a longer-term to a shorter-term trend in the graphical analysis of an asset.

There is a very simple way to determine the trend and that is by using moving averages. Namely - a longer-term and a shorter-term one. When the short-term moving average is above the long-term one, the trend is assumed to be upward. The analyzers use different moving averages in terms of periods and types.

The most common uses, however, are the 200-day and 50-day, prostate (which gives equal weight to all time periods) and exponential (giving more weight to recent time periods) creeping average.

Everyone can decide for themselves what periods for averages to use. We will give an example, however, with the 200-day and 50-day simple crawling values for Bitcoin, on the hourly chart.