Edging Higher
The 200WMA has now held for four consecutive weeks, with the Bitcoin price edging ever closer to the Short-Term Holder cost basis ($68k) for another retest.
G’day Folks,
The Bitcoin price has been edging higher in recent weeks, after recovering the 200-week moving average around $63k. The market did experience a weekly close below the 200WMA towards the end of of June, but has since held above it for four consecutive weeks.
Whilst the 200WMA is just a line on a chart, it is one that is widely observed by investors and traders, particularly those with more experience, and longer investing time-horizons.
Why this specific period of moving average became a common ‘deep value’ price model across numerous asset classes is a mystery of history and human behaviour. However, in the world of Bitcoin, we have a somewhat unique lens to visualise and model what investors do around that level.
In today’s post, I will explore how the Bitcoin supply structure has changed since hitting the 200WMA in early June. I’ll also analyse a series of momentum divergences which are well underway in developing under the market hood.
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