Bitcoin Investor Tool: 2 Year MA Multiplier

2 Year MA Multiplier Indicator Overview

The 2-Year MA Multiplier is a bitcoin chart intended to be used as a long term investment tool.

It highlights periods where buying or selling Bitcoin during those times would have produced outsized returns.

To do this, it uses a moving average (MA) line, the 2yr MA, and also a multiplication of that moving average line, 2yr MA x5.

Note: the x5 multiplication is of the price values of the 2yr moving average, not of its time period.

Buying Bitcoin when price drops below the 2yr MA (green line) has historically generated outsized returns. Selling Bitcoin when price goes above the 2yr MA x 5 (red line) has been historically effective for taking profit.

Why This Happens

As Bitcoin is adopted, it moves through market cycles. These are created by periods where market participants are over-excited causing the price to over-extend, and periods where they are overly pessimistic where the price over-contracts. Identifying and understanding these periods can be beneficial to the long term investor.

This tool is a simple and effective way to highlight those periods.

Bitcoin Price Prediction Using This Tool

The Bitcoin Investor Tool can be used to indicate whether the price of Bitcoin today is at levels that are historically low (in the green zone) or high (in the red zone) or neutral (between the green and red zones). So it is a useful tool for Bitcoin price prediction as investors can understand on a historically relative basis whether $BTC is currently over or undervalued. This can be helpful when forecasting the price of Bitcoin.