Bitcoin and the 20 Week Simple Moving Average

Hey everyone and thanks for jumping back Into the cryptiverse today we're going To talk about Bitcoin and we're going to Be looking at the price color coded by The 20-week SMA of Bitcoin we are also Going to go through an exercise where we Look at all Bitcoin pairs color coded by Whether Bitcoin is above its 20 week SMA Or below its 20 week estimate if you Guys like the content make sure you Subscribe to the channel give the video A thumbs up and again check out the sale On into the cryptographers premium at Into the cryptiverse.com this chart Shows you the price of Bitcoin and it it Color codes it based on whether Bitcoin Is above the 20 week or below the 20 Week so when it's above the 20 week it's Color coded green when it's below the 20 Week SMA it's color-coded red One of the things you'll note is that in All prior pre having years we spend a Good portion of the Year above the 20 Week estimate and a decent portion of The year below the 20 week moving Average You can see this happened in 2019 In 2015 most of the first half of the Year was below the 20 week and then a Lot of the second half of the year was Above the 20 week and in 2011 the first Half of the year was above the 20 week And then the second half of the year was Below the 20-week moving average so

Again when you talk about seasonality of The pre-halving years it's about half Green and half red if you look at the Having years It's mostly green mostly right mostly it Tends to be more than half green in the Having years and even in the Post-happing Years But In the bear Market years right your 2014 Your 2018 2022 is mostly just red in the Prehabbing year it's half red and half Green in the in the having year it tends In the post having year it tends to both Mostly be green and that is how the the Cycles have have historically worked Um for Bitcoin Now I've spoken a lot about how altcoins Perform against Bitcoin and I wanted to Go through just a couple of examples so Let's take a look at how Ethereum performs against Bitcoin I'm sorry I want to Let me let me let me change what I mean We're looking at The Ether Bitcoin Valuation but we're also looking at it Color coded by whether Bitcoin is above Or below is 20-week moving average so When Bitcoin is above its 20 week moving Average The Ether Bitcoin valuation tends to do Quite well as long as it's the having Year or the post having year

Right so this is the having year and Then the post having year Here you have the having year and then The post having year It tends to do quite well But in the bear Market year And the pre having year Ethereum The Ether Bitcoin pair doesn't Tend to go up Even if Bitcoin is above its 20-week Moving average now in 20 22 you can see that it wasn't as bad Compared to 2018 right and 2019 what's Interesting is that ether Bitcoin went Down When Bitcoin was above its 20-week Moving average You can see even today right like Bitcoin's been going up and we know the Bitcoin's been above it's 20 big moving Average because it's a shaded green but The ether Bitcoin valuation has been Slowly going down now it is noticeable That it hasn't been going down as much And of course it it draws it it pulls Into questionable is it because this Time is different or is it just simply Because we're sort of waiting for that Event to occur I mean if it if we were To drop back down to these levels then It could just be Um you know more so similar what we saw Back in 2019 where this main drop here You know occurred in in say July August

And September so I think it's still Worthwhile so Follow The Ether Bitcoin Valuation to see you know how does it Perform and how would it perform if Bitcoin were to go back below its 20-week moving average If you look at the end of 2019 you can See that it started to pop up but when Once Bitcoin got below it's 20 week SMA It just fell back below again to these Prior lows so it's an interesting chart To take a look at now what's more Interesting is to look at other Bitcoin Pairs right so if you look at the Ada Bitcoin valuation and you look to see How that performs look at how in the Having year in the having year and the Post having year Ada Bitcoin tends to do Well when Bitcoin USD is above its 20-week moving average but in the bear Market year and the pre-having year Ada Bitcoin tends to just go down no matter The direction of Bitcoin USD right so I'm familiar that's what we talk about The Bitcoin dominance a lot is because We say the Bitcoin dominance should go Up no matter the direction of Bitcoin USD here's an example of that right Ada Bitcoin went down Sometimes it went down when Bitcoin was Below the 20 weight when it was Color-coded red and sometimes it went Down when Bitcoin was above the 20 week When it was color-coded Green

But the point is that ADA Bitcoin went Down No matter the direction of Bitcoin USD Therefore there's where it comes the Thesis that Bitcoin dominance goes up no Matter the direction of Bitcoin USD is Because we see this trend on so many all Bitcoin pairs right I mean you can look At a lot of them look at the Solana Bitcoin pair and you'll see a very Similar thing this cycle where sole Bitcoin has been bleeding whether Bitcoin USD was above the 20-week SMA or Not and and just one more just for you Know just to sort of cover another one Dot Bitcoin has gone down no matter Whether Bitcoin was above the 20 week Estimate or below the 20 week estimate This is exactly what we've historically Seen is that alts drop against Bitcoin In the bear Market year and the Pre-halving year no matter the direction Of Bitcoin USD hopefully this chart Helps to clarify exactly what I meant so You can better understand how the Altcoin market behaves at various phases Of the cycle now in the having year and The post-habbing year we might expect All coins to outperform again once we Get into that phase of the cycle when Bitcoins above the 20-week customer Now during that phase of the cycle alts Can still get wrecked against Bitcoin if Bitcoin goes below the 20 week estimate

But if bitcoin's above the 20 week SMA The altcoin market at least the ones That are going to survive tend to Outperform and they they tend to sort of Recover at least some of their losses Now some could stand in downtrends Against Bitcoin forever but the ones That will live to see another cycle can Find you know can find local lows Against Bitcoin or macro bottoms Um at some point I would argue over the Next like three to eight months or so so That's what I'll be looking out for uh Hopefully this video was useful if you Guys like the content make sure you Subscribe to the channel give the video A thumbs up but again check out the sale On into the cryptober's premium at into The cryptiverse.com

Coinbase
OUR TAKE

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