view dashboard view dashboard

Simple Moving Average 1458 Days (4 Years)

Data & charts updated every hour - Get 10 seconds

Updated 33 minutes ago
TradingView

Chart

Video Explanation

What is simple moving average?

A moving average is widely used indicator in technical analysis that helps to smooth out the price action by filtering out the noise from random short-term price fluctuations. Simple moving average is basically an arithmetic average of observed periods periods:

Formula
SMA = \dfrac{ \normalsize(day1 + day2 + day3 + ... + dayN)}{\normalsize N}

So, let's say we want to calculate SMA price for Bitcoin for 3 days:

Formula
SMA = \dfrac {(7,500 + 7,600 + 7,100)}{3} = 7,400

How to Interpret Simple Moving Average 1458

Below we calculate the simple moving average for bitcoin for a period of 4 years (1458 days). For each day on the graph we sum prices for the previous 1458 days and divide it by 1458 (the arithmetic average). This period of 4 years is important with Bitcoin because this is the period between two halvings (the time between blocks is 10 minutes and halving is happening every 210,000 blocks, which equals 1,458.33 days). Halvings have a significant impact on the Bitcoin price because they cut daily production in half. The history of the SMA 1458 indicator has proven to show a very reliable support for the bitcoin price.

There are two series on this graph:

SMA1458d
This is simple moving average value for last 1458 days.
Price end of day
Colored dots are representing daily actual price (end of each day). Price can be read on Y axis (left) and colors are representing difference of SMA1458d compared to the previous day. You can see color scale vertically on the right side of the graph with a range between 0 and 1%.
Disclaimer
Any information found on this page is not to be considered as financial advice. You should do your own research before making any decisions.

Get More From Bitbo

View Private Charts

Get Alerts When We Launch New Charts