Bitcoin Price Metrics: Moving Averages, All-Time Highs, Drawdowns, Rogue Waves, and RSI
Fun price metrics with a fun cryptocurrency
Let’s take the five metrics from yesterday that we applied to the S&P 500 and apply it to Bitcoin for some fun compare and contrast. Starting with moving averages:
Bitcoin can go a while (in cryptocurrency time, which is like dog years) between all-time highs but when it does break out you better look out:
In between new all-time highs, there has been some epic pain:
Since Bitcoin is so volatile, it’s almost in a constant state of forming rogue waves:
Thus, the RSI can have some pretty drastic swings between extremely overbought and extremely oversold:
One nice thing about having many years of cryptocurrency experience is that it kind of supercharges the learning curve for trading. After all, the massive upswings and absurd downturns are way crazier than the regular market. Now, when there is some volatility in the S&P 500, it doesn’t seem so bad!