Up 39% in 2023, Is Bitcoin Finally Back?
After a brutal 2022, the fact that we can even ask whether Bitcoin (CRYPTO: BTC) is back actually feels a little uplifting and almost like a victory. But when looking at some data on recent price action, the answer is a little more complicated than just a simple yes or no.
Like stocks or commodities, cryptocurrencies are just another asset. Therefore, we can look at dynamics around its price to get a better idea of current patterns, trends that occur as bear markets turn into bull markets, and whether now might be a good time to invest in Bitcoin.
One of the most widely used indicators to determine macro trends for any asset is the 200-day simple moving average (SMA). This metric takes the average price over the past 200 days and helps give a sense of whether an asset is trending for the better or worse. When Bitcoin's price is above the 200-day SMA, it is viewed as strong support, but when it falls, it turns into heavy resistance.
Source Fool.com
