What is the 21SMA?

  • SMA stands for Simple Moving Average. It's just a way to calculate the average price of Bitcoin over a specific period. In this case, the 21-week SMA takes the average price of Bitcoin over the last 21 weeks. This green line moves along the chart, giving traders a sense of whether the price is generally going up or down over time.

  • When the price is above the SMA, it’s often considered a sign that the price could be in an uptrend (going up). When it’s below, it can mean a downtrend (going down).

What does "crossing above the 21SMA" mean?

  • Recently, Bitcoin's price went above the 21SMA (green line). This is important because it might mean that the market is gaining strength or that Bitcoin could go higher in price.

  • Traders and investors pay attention to this because it’s a sign that Bitcoin might be getting ready to go on a bullish run (meaning it could go up for a while).

Why does this matter?

  • Crossing above the 21SMA is a key moment because it suggests that Bitcoin might be getting stronger. However, traders are cautious because it’s not guaranteed. They want to see a second green candle to confirm that this breakout is real, which will make them more confident about Bitcoin going higher.

In simple terms:

  • Bitcoin’s price just passed an important level (the green line, or 21SMA).

  • Now traders are watching to see if Bitcoin will keep going up (breakout) or if this is a (fakeout ) and Bitcoin will drop again.

  • If another green candle forms next week, it will confirm the breakout, and more people will likely buy, expecting prices to rise.

Note - more information

If you're new to the crypto world, here's what you should know

  • If Bitcoin’s price crosses above the 7-week SMA, it might signal short-term bullishness (the price is going up in the short term).

  • If Bitcoin’s price crosses above the 21-week SMA, it could be a stronger, more reliable sign of a longer-term uptrend.

In summary:

  • 7-week SMA: Shorter-term signal, reacts quickly to price changes, more volatility.

  • 21-week SMA: Longer-term signal, smoother and more reliable for overall trend direction.


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