200 Week Moving Average Heatmap

200 Week Moving Average Heatmap Indicator Overview

In each of its major market cycles, Bitcoin's price historically bottoms out around the 200 week moving average.

This indicator uses a colour heatmap based on the % increases of that 200 week moving average.

Depending on the month-by-month % increase of the 200 week moving average, a colour is assigned to the price chart.

How It Can Be Used

The long term Bitcoin investor can monitor the monthly colour changes. Historically, when we see orange and red dots assigned to the price chart, this has been a good time to sell Bitcoin as the market overheats. Periods where the price dots are purple and close to the 200 week MA have historically been good times to buy.

Bitcoin Price Prediction Using This Tool

If you are looking to predict the price of Bitcoin or forecast where it may go in the future, the 200WMA heatmap can be a useful tool as it shows on a historical basis whether the current price is overextending (red dots) and may need to cool down. It can also show when Bitcoin price may be good value on a historical basis. This can be when the dots on the chart are purple or blue.

Over more than ten years, $BTC has spent very little time below the 200 week moving average (200WMA) which is also worth noting when thinking about price predictions for Bitcoin or a Bitcoin price forecast.